It is very common today to acquire small enterprises into giant firms through amazing deals. Previously we saw Mukesh Ambani acquires many firms as a part of their business expansion. In Today’s competitive world, it is very common of acquisitions and mergers as a part of corporate business.
Likewise, PayU acquired India’s largest payment system “BillDesk” for $4.7 Billion. With the deal, Prosus(The Payments and Fintech group) of PayU has became one of the leading payment providers which has presence in more than 20 Countries in terms of TPV(Total Payment Volume).
Role of BillDesk Till Date–
BillDesk was founded by MN Srinivasu, Karthik Ganapathy and Ajay Kaushal in the year 2000 where it was backed by investors like General Atlantic, Visa, Clearstone and Temasek.
Apart from BillDesk, PayU has engaged in digital payment modes of the consumers and merchant transactions following the regulations of the government from time-to-time.
Both PayU and BillDesk provides consumer protection during online transactions and make them successful.
Regarding this deal,CEO of Prosus,Bob van Dijk expressed happiness and are committed to provide better online payment experience further. He added-“We are in this business since 2005 especially in India we have invested almost $6 Billion and with this deal we are closer to $10 Billion business growth.
Another CEO of PayU, Laurent Le Moal said, “We thought that this transaction would increase both competition and innovation among India’s digital payments industry. This will help to strengthen India’s digital economy and bringing financial services to one and all.”
Co-Founder of Bill Desk, M.N.Srinivasu expresses his gratitude on this deal and are happy to provide making payments easier, faster and more secure. We are excited to be a part of PayU as BillDesk and PayU can deliver a driving force within the digital payments era in India.
Morgan Stanley was the sole financial advisor to BillDesk and PJT Partners and Avendus Capital were financial advisors to Prosus on this transaction
On the whole PayU acquisition of BillDesk for $4.7 Billion is a welcome deal to India’s digital payment system.