Netherlands-based internet group Prosus’ payment processing subsidiary PayU is buying BillDesk, the India-based mobile wallet provider backed by payment processor Visa, in a merger deal worth $4.7bn.
The merger will purportedly make PayU one of the largest online payment providers globally by payment volume – around $147bn annually – catering to individual, business and government customers.
Founded in 2000, BillDesk has developed an online payment platform allowing customers to connect their bank accounts to make bill payments. In addition to its own payment platform, PayU also provides credit for individuals and businesses and makes investments in fintech companies.
The newly enlarged company will benefit from major sector tailwinds that are projected to see more than 200 million new users take up digital payments over the next three years, according to the Reserve Bank of India, along with a ten-fold increase in average annual transactions.
Visa led an $85m funding round into BillDesk in February 2019 featuring Claymore Investments, a subsidiary of Singapore’s state-owned investment house Temasek. It came only a few months after Visa provided a reported up to $300m to BillDesk at a $1.8bn valuation.
Growth equity firm General Atlantic led a $150m round into the company in 2015, joined by Temasek. It followed an undisclosed round in 2012 from TA Associated and Clearstone Venture Partners as well as a $7.5m investment in 2006 from State Bank of India.
M N Srinivasu, co-founder of BillDesk said: “BillDesk 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.
“BillDesk has always been committed to making payments faster, easier and more secure. We are excited about what the two great teams at BillDesk and PayU can deliver together as a driving force within the evolving digital payments landscape in India.”
