PayU, the payments and FinTech business of Prosus, is spending $4.7 billion or R69 billion to buy Indian digital payments provider BillDesk.
The proposed acquisition will see PayU, which operates in more than 20 high-growth markets, become one of the leading online payment providers globally by total payment volume (TPV).
Acquisition of BillDesk will see PayU become one of the leading online payment providers globally, handling a total payment volume (TPV) of $147 billion or R2.1 trillion.
The deal will bring Prosus’s cumulative investment in Indian tech to more than $10 billion or R145 billion.
“Our announcement today reflects Prosus’s desire to build valuable, global consumer internet businesses that provide useful products and services for millions of people in their everyday lives,” Bob van Dijk, Group CEO of Prosus, said.
“Along with classifieds, food delivery, and education technology, payments and fintech is a core segment for Prosus, and India remains our number one investment destination.”
Together, PayU India and BillDesk will be able to meet the changing payment needs of digital consumers, merchants and government enterprises in India and offer state-of-the-art technology to even more of the excluded sections of society, while adhering to the regulatory environment in India and delivering robust consumer protection.
“We believe this transaction will stimulate both innovation and competition within India’s digital payments industry. This will not only help to strengthen India’s digital economy, but also bring financial services to those who may have historically been excluded. This ambition is fully aligned with the Government of India’s vision of ‘Digital India’ and is a key objective for PayU across all the communities we serve globally,” Laurent Le Moal, CEO of PayU, said.
“This deal is an example of how our purpose and our business objectives work together, accelerating growth and increasing access to financial services.”
BillDesk, founded in 2000, is an Indian success story and one of the leading payment businesses in the country.
“BillDesk has been a pioneer in driving digital payments in India for well over a decade,” M N Srinivasu, co-founder of BillDesk, said.
“This investment by Prosus validates the significant opportunity in India for digital payments that is being propelled by innovation and the progressive regulatory framework put into place by the Reserve Bank of India, India’s central bank.”