Payu terminated the $4.7 billion acquisition of billdesk. what could be the reason?

One of the largest merger and acquisition deals in the financial technology space has fallen through. Prosus NV, which owns PayU, on Monday said it has terminated its $4.7-billion (about `38,400 crore) deal to acquire Indian payments firm BillDesk after certain conditions were not met by the September-end deadline. The acquisition would have been the country’s second-largest Internet deal after Walmart acquired Flipkart for $16 billion in 2018. Funding in Indian fintech down by 40% in 2022, will show improvement in 2023, says IIFL Fintech Also read: The deal was approved by the Competition Commission of India (CCI), which was one of the conditions precedent, on September 5. However, it was yet to receive the approval of the Reserve “Closing of the transaction was subject to the fulfilment of various conditions precedent, including approval of the CCI. PayU secured CCI approval on September 5, 2022. However, certain conditions precedent were not fulfilled by the September 30, 2022, long stop date, and the agreement has terminated automatically in accordance with its terms and, accordingly, the proposed transaction will not be implemented,” Prosus said in a statement. A condition precedent is a stipulation that must either occur or be met by either party to ensure progress or execution of a contract. The amalgamation of BillDesk with PayU would have created a digital payments firm with an annual total payment volume (TPV) of $147 billion. Its closest rivals in India such as ...

Prosus NV, which owns PayU, has terminated a USD 4.7 billion (about Rs 38,400 crore) deal to acquire Indian payments firm BillDesk, saying certain conditions precedent were not met. Prosus, the global investment arm of South African multinational Nasper, had on August 31 last year announced acquisition of BillDesk in an all-cash deal to expand its footprint in India's booming fintech sector under the umbrella of its payment gateway PayU. ''Closing of the transaction was subject to the fulfilment of various conditions precedent, including approval of the Competition Commission of India (CCI),'' Prosus said in a statement. While PayU secured CCI approval on September 5, 2022, ''certain conditions precedent were not fulfilled by September 30, 2022 long stop date and the agreement has terminated automatically in accordance with its terms and, accordingly, the proposed transaction will not be implemented,'' it said. (This story has been published from a wire agency feed without any modifications to the text. Only the headline has been changed.) Dear Reader, As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake. Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever. We deliver over 10 - 15 high qual...

PayU and BillDesk’s $4.7 billion deal has been terminated, said PayU’s parent company Prosus NV, based in the Netherlands. The agreement was reached upon on August 31, and the Competition Commission of India had given its nod to the acquisition on September 5. Prosus NV said in a filing that the completion of the deal was subject a host of approvals, along with CCI’s nod. “However, certain conditions precedent were not fulfilled by 30 September 2022 long stop date, and the agreement was terminated automatically in accordance with its terms, and, accordingly the proposed transaction will not be implemented.” During the acquisition, Prosus said that the deal would complement its PayU business and strengthen its presence in India, which is one of Prosus' largest markets. The deal would have made Prosus one of the leading online payment providers globally by total payment volume, according to the company’s acquisition announcement. PayU and BillDesk together aimed to meet the changing payments needs of digital consumers, merchants, and government enterprises, as well as offer state-of-the-art tech to excluded sections of the society. “Our announcement today reflects Prosus’ desire to build valuable, global consumer internet businesses that provide useful products and services for millions of people in their everyday lives. Along with classifieds, food delivery, and education technology, payments and fintech is a core segment for Prosus, and India remains our number one investm...

In one of the largest deals in the payments space, the two fintech players PayU and BillDesk will create a formidable force in the fast-growing digital payments. PayU will be acquiring BillDesk in a $4.7 billion deal. The holding company Prosus NV has said BillDesk would complement its Indian payment business under PayU. So what all BillDesk brings to the table for PayU. Bill payments network The acquisition of BillDesk gives PayU the largest bill payment ecosystem in India. BillDesk started the bill payments business two decades ago. It has a tie-up with almost all the banks and institutions in India. Today, the BillDesk platform offers over 20,000 billers from utility bill payments, gas bills, insurance premiums to DTH subscriptions. These services are available on all banking platforms from websites to apps. PayU gets a huge network of banks and relationships to offer more services in the future. Payment aggregator for merchants BillDesk also has a large payment aggregation business where it has aggregated payments methods (credit, debit cards, UPI, net banking) to enable merchants to accept payments online. There are as many as 170 plus payments methods offered by the BillDesk platform. The company claims it has reached a throughput payments capacity of $100 billion in its payments gateway and bill payment business in the first pandemic year 2020-21. The volumes are expected to grow rapidly as digital payments have increased big time post the pandemic. The public listi...

Table of Contents • • • • • • • • • • • • • • • • • • Introduction PayU, a fintech company funded by Prosus, has purchased BillDesk, India’s first payment gateway, for $4.7 billion, making it the country’s largest digital payment acquisition. Prosus plans to expand its payments and fintech firm PayU with this acquisition. PayU is one of the largest payment providers in the world, with a total payment volume (TPV) of $147 billion. This acquisition is noteworthy since BillDesk, which has been operating in India for over 20 years, is one of the country’s oldest payment gateways, covering over 6 PayU’s $4.7 billion acquisition of BillDesk appears to be the second largest exit by an Indian start-up through an acquisition (after PayU is the favoured payment gateway for a wide range of internet enterprises, whereas BillDesk leads the government and Banking, Financial Services, and Insurance (BFSI) industries. BillDesk has a near monopoly in payment processing for government bodies, which is highly profitable because it is a steady stream of cash that is always expanding, unlike e-commerce, tourism, or other companies that have occasional spikes and troughs. BillDesk’s banking relationships, on the other hand, offer new markets for PayU rather than competing with it, and no electronic payment provider can remain powerful and influential without adapting to the new economy. BillDesk had been About PayU • The • PayU is Prosus’ payments and fintech division. Prosus is a global consum...

Prosus NV has canceled a $4.7 billion deal to buy Indian payments firm BillDesk after conditions on the deal were not met. The deal had received approval by the Competition Commission of India (CCI) last month, though the company said that ‘certain conditions precedent’ were not met by the deadline at the end of last month. On 31 August 2021, Naspers announced that an agreement had been reached between PayU Payments Private Limited (PayU), a subsidiary of Prosus N.V. (Prosus), and the shareholders of the Indian digital payments provider BillDesk to acquire BillDesk for $4.7 billion. BillDesk, founded in 2000, is a leading payment businesses in the country. PayU secured CCI approval “Closing of the transaction was subject to the fulfilment of various conditions precedent, including approval by the Competition Commission of India (CCI). PayU secured CCI approval on 5 September 2022. However, certain conditions precedent were not fulfilled by the 30 September 2022 long stop date, and the agreement has terminated automatically in accordance with its terms and, accordingly, the proposed transaction will not be implemented,”Prosus informed on Monday, October 3, 2022. Read the entire article on Live Mint >

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In one of the largest deals in the payments space, the two fintech players PayU and BillDesk will create a formidable force in the fast-growing digital payments. PayU will be acquiring BillDesk in a $4.7 billion deal. The holding company Prosus NV has said BillDesk would complement its Indian payment business under PayU. So what all BillDesk brings to the table for PayU. Bill payments network The acquisition of BillDesk gives PayU the largest bill payment ecosystem in India. BillDesk started the bill payments business two decades ago. It has a tie-up with almost all the banks and institutions in India. Today, the BillDesk platform offers over 20,000 billers from utility bill payments, gas bills, insurance premiums to DTH subscriptions. These services are available on all banking platforms from websites to apps. PayU gets a huge network of banks and relationships to offer more services in the future. Payment aggregator for merchants BillDesk also has a large payment aggregation business where it has aggregated payments methods (credit, debit cards, UPI, net banking) to enable merchants to accept payments online. There are as many as 170 plus payments methods offered by the BillDesk platform. The company claims it has reached a throughput payments capacity of $100 billion in its payments gateway and bill payment business in the first pandemic year 2020-21. The volumes are expected to grow rapidly as digital payments have increased big time post the pandemic. The public listi...

Prosus NV, which owns PayU, has terminated a USD 4.7 billion (about Rs 38,400 crore) deal to acquire Indian payments firm BillDesk, saying certain conditions precedent were not met. Prosus, the global investment arm of South African multinational Nasper, had on August 31 last year announced acquisition of BillDesk in an all-cash deal to expand its footprint in India's booming fintech sector under the umbrella of its payment gateway PayU. ''Closing of the transaction was subject to the fulfilment of various conditions precedent, including approval of the Competition Commission of India (CCI),'' Prosus said in a statement. While PayU secured CCI approval on September 5, 2022, ''certain conditions precedent were not fulfilled by September 30, 2022 long stop date and the agreement has terminated automatically in accordance with its terms and, accordingly, the proposed transaction will not be implemented,'' it said. (This story has been published from a wire agency feed without any modifications to the text. Only the headline has been changed.) Dear Reader, As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake. Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever. We deliver over 10 - 15 high qual...