This marks one of the largest acquisitions in India’s digital payments space and by far the biggest consolidation move in the fast-growing sector.
Post the acquisition the combined entity of PayU and BillDesk will emerge as the leading online payment providers globally and in India by total payment volume (TPV), a company statement said.
Founded in 2000 by three former Arthur Andersen executives — M N Srinivasu, Ajay Kaushal and Karthik Ganapathy — BillDesk is one among the rare profitable internet companies in India.
The Mumbai-based company has been among the largest online payments processing companies in the country. It competes with the likes of Naspers-backed PayU, CCAvenue and a bunch of younger startups like RazorPay.
“We have a long and deep relationship with India, having supported and partnered with some of its most dynamic entrepreneurs and new tech businesses since 2005. We’ve invested close to $6 billion in Indian tech to date, and this deal will see that increase to more than $10 billion,” said Bob van Dijk, group CEO of Prosus.
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Amazon, which won a huge victory against Future Retail in the Supreme Court in early August, is doing everything in its power to thwart its takeover by Reliance. It has now written to Sebi, asking the regulator to withdraw the conditional approval.
Srinivasu of BillDesk, said the investment by Prosus validates the significant opportunity in India for digital payments which is being propelled by innovation and the progressive regulatory framework put into place by the Reserve Bank of India.