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PayU acquires BillDesk for $4.7bn

September 01, 2021

PayU acquires BillDesk for $4.7bn

Prosus-backed fintech firm PayU is set to obtain India’s earliest payment gateway BillDesk in an all-cash transaction of $4.7 billion. This will be the biggest securing in India’s digital payment space. The deal will likewise give exit to investors General Atlantic, TA Associates, Temasek, Clearstone Ventures, and Visa.

The proposed acquisition will help PayU, the payment and fintech business of Prosus which operates in more than 20 markets, become one of the leading online payment providers internationally by total payment volume (TPV). The combined entity will have a sum of 4 billion transactions annually.

Prosus, the global consumer internet group and one of the biggest technology investor on the globe, said in a filing that the worth of the net assets that are essential for the obtaining was $256.9 million (around ₹1,927.5 crore), and the profit after tax for the year ended March 31, 2021 was $36.8 million (around ₹270 crore).

The latest deal is happening when the Indian payments segment is seeing huge traction. As indicated by the FY21 yearly report of the Reserve Bank of India (RBI), the number of transaction for digital retail payments developed by more than 80% from 24 billion of every 2018-19 to 44 billion out of 2020-21. Throughout the following three years, the RBI expects more than 200 million new clients to adopt digital payments, with the average annual transactions per capita rising ten times from 22 to 220.

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