CCI Approves the Acquisition of BillDesk by PayU Payment (Business)

CCI approves the acquisition of BillDesk by PayU Payment (Business): The procurement of online payments company Billdesk by PayU for $4.7 billion has been approved by the Competition Commission of India(CCI). CCI has sanctioned the acquisition of 100% of the equity share capital of online payments company Billdesk(Indiaideas.com) by PayU Payments. In August 2021, global consumer internet group and technology investor Prosus NV stated that an agreement has been made between PayU and the shareholders of BillDesk to acquire BillDesk for $4.7 billion.

News: Highlights

The main highlights of this news are:

• The PayU-BillDesk deal is expected to be the second-largest in the Indian internet sector, following Walmart’s acquisition of 77% stake in Flipkart for $16 Bn. This will entail the merger of two of India’s largest payment gateway companies.
• PayU India primarily offers payment aggregation services, allowing merchants (and other entities) to receive payments from their customers via a variety of digital payment methods. PayU India’s shares are indirectly held by Prosus. Prosus is the largest consumer Internet company in Europe and is one of the leading technology investors in the world.
• IIL, on the other hand, is an unlisted public limited company that operates under the brand name ‘BillDesk’ in India to provide payment aggregation services that enable merchants and other entities to receive payments from their customers via a variety of digital payment methods.
• BillDesk is PayU’s fourth acquisition in India. Prior to this, the online payments major bought CitrusPay for $130 Mn, Wibmo for $70 Mn, and acquired a controlling stake in PaySense for $185 Mn.

Significance of this agreement

 The Significance of BillDesk-PayU Agreement are mentioned below:

• This BillDesk acquisition by PayU is also consistent with the Indian government’s Digital India mission and will benefit Indian merchants, government institutions, and consumers.
• This deal will have substantial pro-competitive benefits for the Indian economy and will strengthen the Indian digital payments market, which is fully regulated by the Reserve Bank of India.
• This agreement will bring cutting-edge technology to even more underserved segments of society while adhering to India’s regulatory environment and providing strong consumer protection. Prosus’ total investment in Indian technology will now exceed $10 billion.