Mumbai: In an agreement that will make the largest online payment provider in India, his parent prosus has said that it will acquire Billdesk Payment companies for $ 4.7 billion.
This is the biggest deal in Indian payment room.
It is in accordance with international trends.
Earlier this month Jack Dorsey Co-Founded Square has acquired `buy now paying later ‘after $ 29 billion.
The pioneer in the payment gateway room, Billdesk, was founded in 2000 by M Srinavasu, Ajay Kaushal and Karthik Ganapatati.
The acquisition was announced by the Dutch-based prosus that applies, South African internet and Fintech giant media, e-commerce, and other international investments including Payu.
According to the submission by IndiaIndeas.com, on March 31, 2020 companies that have the Billdesk brand, General Atlantic, holding 14.8% of the shares and international visa is the second largest investor with 13.12%.
Srinvasu promoters, Kaushal and Ganapathy resisted 11.39%, each 10.59% and 8.84%.
Another large private equity investor is the Temsasek Entody Claymore Investments (13.12%), TA Associates’ Arm Wagner Limited (13.66%) and Venture Clearstone (6.68%) with this agreement, the combined investment in Payu for the last five years across $ 5 billion.
The combined entity will have a total payment value of $ 147 billion and increase the number of transactions managed by a four-fold pot to 4 billion.
For investors, Billdesk has become a derivative of e-commerce growth in India.
The acquisition besides providing a lung scale provides the opportunity to offer value-added services such as analytics and artificial intelligence.
Naspers have built a large presence in the online room through a series of acquisitions including Redbus and Citruspay in 2016 for $ 130 million.
“We have a long and in-depth relationship with India, after being supported and partnered with some of the most dynamic entrepreneurs and new technology businesses since 2005.
We have invested close to US $ 6 billion in Indian Tech to date, and this agreement will see it.
Increases To be more than $ 10 billion, “said Bob Van Dijk, CEO of the Prosus group in a statement.
“Together with classified ads, feeding, and educational technology, payment and Fintech are the core segments for the prosus, and India remains our number one investment destination,” he added.
Laurent Le Moal, CEO, Payu said that this acquisition would help stimulate innovation and competition and also promote government goals in financial inclusion.
According to the FY21 annual report from the Reserve Bank of India (RBI), the number of transactions for digital retail payments has grown more than 80% from 24 billion in 2018-19 to 44 billion to 2020-21.
MN Srinavasu, Co-Founder Billdesk, said: “Billdesk has been a pioneer in encouraging digital payments in India for more than a decade.
Investment by this prosus validates significant opportunities in India for digital payments driven by innovation and progressive regulatory frameworks placed by Reserve Bank of India, Indian Central Bank “.
The size of the agreement reveals the appreciation of the value that has been seen by the company in recent years.
VISA minority stock investment in the company appreciates $ 1.8 billion recently as November 2018.
Online payment has received a big boost first in payment of encouragement to digital after demonetization and recently after the Covid-19 social pandemic emphasizes.
To put things in perspective, some major lenders such as Canara Bank have markets under $ 4 billion.