PayU acquires Digital payments provider BillDesk
Fintech services provider, PayU, is set to acquire the Indian digital payments provider, BillDesk for $4.7 billion. This will be one among the largest deals in Indian fintech sector.
- This announcement was made by the global consumer internet group and one among the largest technology investors worldwide, Prosus NV on August 31, 2021.
- The proposed acquisition will see PayU that operates in more than 20 high-growth markets. It also became one of the leading online payment providers by total payment volume, globally.
- PayU focuses on high-growth markets and operates in three distinct businesses-
- Payments for domestic and cross border transactions,
- Credit solutions for consumers and small businesses,
- Strategic investments in innovative fintech companies like Remitly in the US as well as building a full financial services ecosystem in India.
- Transaction is subject to approval from the Competition Commission of India and it has been built on previous successful acquisitions by PayU in India, including Paysence, CitrusPay, and Wibmo.
Significance of the move
- Now, PayU India and BillDesk will be able to meet changing payments needs of digital consumers, merchants and Government enterprises in India.
- It will also offer state-of-the-art technology to more excluded sections of society. It will also adhere to the regulatory environment in India and deliver a robust consumer protection.
BillDesk is an Indian online payment gateway company. It is based in Mumbai. It is a financially independent company and is monitored under the Payments and Settlements Systems Act, 2007 which is regulated and supervised by the Reserve Bank of India. It was founded by Indian entrepreneurs viz., M.N. Srinivasu, Ajay Kaushal and Karthik Ganapathy in the year 2000.
Category: Economy & Banking Current Affairs - 2022
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