Nasper-backed PayU in talks to acquire BillDesk for up to $4 billion

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Nasper-backed fintech firm PayU has started talks to acquire domestic payment gateway major BillDesk, and the deal size could be in the range of $3-4 billion, sources in the realize said.


“BillDesk has been open to being acquired for some time now, but up to now the valuations that the company used to be seeking proved to be a hurdle,” said a source. “Three years ago too, PayU had approached BillDesk for an acquisition, but things didn’t go ahead because of high valuations. BillDesk had asked for $2-billion value then,” said the source.


“Whether the deal happens, it’ll be a shot in the arm for PayU, which will have the ability to capture all the end-to-end payments ecosystem,” said a partner at a venture capital fund with investments in several fintech start-ups.


Messages sent to PayU did not elicit any response, while BillDesk could not be reached.


Media reports have said Paytm, which will soon get a hold of its initial public offering (IPO), may be evaluating BillDesk.


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“Billdesk is a very ecocnomic and well-managed company. Its foray in the government segment is the strongest, and has an enviable technology back-end. Whoever acquires it’ll be surely getting access to good commerce,” said another source from the fintech industry.








“The Paytm IPO is creating momentum in the fintech space and several M&As (mergers and acquisitions) are likely to happen in the coming few months,” said Mahesh Singhi, founder & MD, Singhi Advisors.


BillDesk used to be founded in 2000 by a team of ex-Arthur Anderson professionals — M N Srinivasu, Ajay Kaushal and Karthik Ganapathy. Reports say it handles 50-60 per cent of billing transactions in India.


According to the company’s website, BillDesk’s investors include TA Associates, Clearstone Ventures, General Atlantic, and Temasek. It also says BillDesk is India’s largest institution, and its technology, payments products and services and its extensive processing network are used by India’s largest banks and lots of of India’s organizations across diverse industry segments such as telecom, insurance, utilities, financial products and services, education, entertainment and e-commerce businesses. The BillDesk platform processes a majority share of the online and mobile payments transactions that are conducted through aggregator platforms in India.


The integration of payment gateway has develop into some of the critical aspects of each industry. It allows collecting money through the customer’s preferred bank without compromising touchy data. The Indian payment gateway market is expected to register a compound annual growth rate of 15 per cent over 2020-2025, according to a outline by ResearchandMarkets.com.

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