Prosus NV doubled down on its funding in India on Tuesday with a $4.7 billion deal for funds platform BillDesk, making it one of many largest gamers within the nation’s fast-growing fintech sector.
Prosus, Europe’s reply to SoftBank and its Vision Fund, mentioned BillDesk will complement its personal PayU enterprise, which operates in India, Latin America and Europe.
India has been a serious focus for Netherlands-based Prosus however the BillDesk deal is its largest funding there so far.
“This is really a transformative transaction for PayU and its position as one of the leading payment and fintech providers in India and actually in the world,” Prosus CEO Bob van Dijk mentioned on a media name.
Prosus, which was spun out of Naspers of South Africa in 2019, owns stakes in client web firms in on-line marketplaces, instructional software program, meals supply and fintech. It operates a few of the firms.
Best identified for its 28.9 per cent stake in Tencent of China, Prosus is betting that its long-term investments can fill a yawning valuation hole and provides it the identical title recognition as one of many world’s most aggressive know-how traders.
The speedy progress of the funds trade worldwide has been helped by rising demand through the pandemic.
PayU processed $55 billion in funds within the yr ended March 31, 2021, a 51 per cent improve on the earlier yr.
The firms didn’t give a comparative determine for BillDesk, however Prosus mentioned it was greater than $90 billion. BillDesk made a internet revenue of Rs 271 crores ($37.05 million) for the yr ended March 31 2021, suggesting an acquisition value of greater than 100 instances earnings.
PayU CEO Laurent le Moal defended the worth tag, arguing it is smart given the speedy progress in BillDesk’s market, its management place, its present revenue margins and the potential for the mixed firms to enter adjoining markets.
The deal to purchase BillDesk, which was based in 2000, is topic to regulatory approvals, together with by the Competition Commission of India.
Prosus mentioned Tuesday’s acquisition brings the entire it had invested within the Indian market to greater than $10 billion.
In India, it’s a main investor in Swiggy, considered one of two meals supply platforms combating for dominance.