Global consumer internet group Prosus NV on Tuesday said PayU will acquire Indian digital payments provider BillDesk for $4.7 billion (about Rs 34,376.2 crore). "...An agreement has been reached between PayU and the shareholders of the Indian digital payments provider BillDesk to acquire BillDesk for $4.7 billion," a statement said.
The proposed acquisition will see PayU, the payments and fintech business of Prosus which operates in more than 20 high-growth markets, become one of the leading online payment providers globally by total payment volume (TPV) - handling a TPV of $147 billion, it added.
The transaction, which is subject to approval from the Competition Commission of India (CCI), builds on previous successful acquisitions by PayU in India, including CitrusPay, Paysense and Wibmo, the statement said.
BillDesk was founded in 2000.
"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 USD 6 billion in Indian tech to date, and this deal will see that increase to more than USD 10 billion," Bob van Dijk, Group CEO of Prosus, said.
He added that the announcement reflects Prosus' desire to build valuable, global consumer internet businesses that provide useful products and services for millions of people in their everyday lives.
"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," he said.
M. N. Srinivasu, co-founder of BillDesk, said the company has been a pioneer in driving digital payments in India for well over a decade.
"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," Srinivasu said.
PayU India and BillDesk run complementary businesses within India's digital payment industry. Together, the two expect to create a financial ecosystem handling four billion transactions annually - four times PayU's current level in India, the statement said.