Netherlands- headquartered Prosus NV, the parent company of PayU Payments, said on October 3 that it had terminated the deal to acquire Indian payment aggregator BillDesk.
PayU secured CCI blessing on 5 September 2022. still, certain conditions precedent weren’t fulfilled by the 30 September 2022 long stop date, and the agreement has terminated automatically in agreement with its terms and, consequently, the proposed sale won’t be enforced,” Prosus said in a stock exchange form.
The deal was blazoned a time ago by Prosus on August 31, 2021 and had brought the company’s total investment in India to$ 10 billion. It was set to be the country’s alternate- largest internet deal after Walmart’s accession of Flipkart in 2018.
innovated in 2000 by MN Srinivasu, Ajay Kaushal and Karthik Ganapathy, BillDesk focuses on making, accepting and collecting payments. Besides easing over 170 payment styles as a payment aggregator, it provides biller network results through the Bharat Bill Payment System( BBPS) and enables the collection of recreating payments.
The Competition Commission of India( CCI) had approved the deal on September 5 after weeks of detainments and fresh queries.
n an exclusive interview with Moneycontrol post the advertisement of the accession in 2021, BillDesk’s Srinivasu had detailed the explanation behind the trade to PayU.
before in 2021, we began the process of assessing how we go about doing an IPO. Some of our investors have been there with us for 15- 16 times. So we had a responsibility towards how we give liquidity to investors. When we were on the IPO path, we were reached out to by Prosus,” he’d said.
The intriguing thing about Prosus is one, they’ve the right blend of fiscal investment and business strategy. Secondly, it provides us the necessary backing and motivation to grow. It also allows the right exit for shareholders who have been there for lon.”
The termination of the deal after a time presents a challenge for BillDesk to give an exit to its investors, while slows PayU’s growth plans in the Indian payments space.
According to PayU, the two realities combined were anticipated to reuse Total Payment Values( TPV) of$ 147 billion as per figures for the fiscal time 2020- 21. The gross earnings of both realities as per FY21 figures stood at$ 752 billion.
According to assiduity estimates, BillDesk enjoys a 25- 30 percent request share in the online payment aggregator space, followed by Razorpay at 15- 20 percent. PayU is the third largest player with a share of 10- 15 percent, according to estimates.
Other players in the space include CCAvenues, Paytm, Pine Labs and offline players like MSwipe and PhonePe are too planning to launch their own payment gateways.
While BillDesk has a fort in government and Banking, Financial Services and Insurance( BFSI) parts, PayU is the go- to payment gateway for an array of internet companies.
According to assiduity experts, the deal marked the morning of the connection in the growing and fractured payments space which is also seeing players shift from only online or offline immolations to furnishing omnichannel products for merchandisers.