Prosus NV, which owns PayU and is the global investment arm of South African multinational Nasper, on Monday said it has terminated a $4.7-billion (nearly Rs 38,400 crore) deal to acquire Indian payments firm BillDesk. The firm said certain conditions precedent were not met.
Prosus had in August 2021 announced the acquisition of BillDesk in an all-cash deal to expand its footprint in India’s 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 in a statement said that while PayU secured the 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."
Prosus has been a long-term investor and operator in India, investing close to $6 billion in Indian technology companies since 2005. “Prosus remains committed to the Indian market and growing its existing businesses within the region," it said.
The company’s investments include Byju’s, DeHaat, Meesho, Mensa Brands and Good Glamm Group.
BillDesk, founded in 2000 by MN Srinivasu, Ajay Kaushal and Karthik Ganapathy, focuses on making, accepting and collecting payments. It facilitates more than 170 payment methods as a payment aggregator. It also provides biller network solutions through the Bharat Bill Payment System (BBPS) and enables the collection of recurring payments.
The Competition Commission of India (CCI) approved the deal on September 5 after weeks of delays and additional queries.