Payment processing firm Visa has invested up to $300m in India-based mobile wallet provider BillDesk at a valuation of $1.8bn, according to the Economic Times.
Visa did not confirm financial details but a person familiar with the matter told ET the deal consisted of approximately $200m in direct investment and between $80m and $100m as a secondary purchase.
Founded in 2000, BillDesk operates an online payment and loyalty platform that enables customers to pay bills by linking their existing bank account. The company launched with a focus on utilities but today covers a wide range of businesses.
Visa’s investment will help BillDesk develop additional products around its existing offering and support expansion efforts into new markets.
Growth equity firm General Atlantic had led a $150m funding round for the company in 2015 that included Singapore state-owned investment firm Temasek.
Private equity firm TA Associates had already injected an undisclosed sum in 2012, after venture capital firm Clearstone Venture Partners and government-owned financial services firm State Bank of India provided $7.5m in 2006.
State-owned financial services provider Bank of Baroda and Sidbi Venture Capital, a subsidiary of government-owned development financial institution Small Industries Development Bank of India, had invested an undisclosed sum in 2001.
Investment firm March Capital Partners was also an investor in BillDesk as of March 2016, though it is unclear when it committed the funding.
Chris Clark, Visa’s regional president for Asia Pacific, said: “As a leading payments player in India, BillDesk has been a long-time business partner to Visa.
“Having worked with BillDesk’s founders over the years, the Visa leadership has been consistently impressed with their vision, market knowledge and execution capabilities, as well as alignment on values. This investment further reinforces our long-term commitment to India’s digital payments growth story.”
