INSUBCONTINENT EXCLUSIVE:
Prosus is keen to expand its presence in IndiaProsus NV doubled down on its investment in India on Tuesday with a $4.7 billion deal for
payments platform BillDesk, making it one of the biggest players in the country's fast-growing fintech sector.Prosus, Europe's answer to
SoftBank and its Vision Fund, said BillDesk will complement its own PayU business, which operates in India, Latin America and Europe.India
has been a major focus for Netherlands-based Prosus but the BillDesk deal is its biggest investment there to date."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 said on a media call.Prosus, which was spun out of Naspers of South Africa in 2019, owns stakes in consumer
internet companies in online marketplaces, educational software, food delivery and fintech
investments can fill a yawning valuation gap and give it the same name recognition as one of the world's most aggressive technology
investors.The rapid growth of the payments industry worldwide has been helped by rising demand during the pandemic.PayU processed $55
figure for BillDesk, but Prosus said it was more than $90 billion
BillDesk made a net profit of Rs 271 crores ($37.05 million) for the year ended March 31 2021, suggesting an acquisition price of more than
100 times earnings.PayU CEO Laurent le Moal defended the price tag, arguing it makes sense given the rapid growth in BillDesk's market,
its leadership position, its current profit margins and the potential for the combined companies to enter adjacent markets.The deal to buy
BillDesk, which was founded in 2000, is subject to regulatory approvals, including by the Competition Commission of India.Prosus said
Tuesday's acquisition brings the total it had invested in the Indian market to more than $10 billion.In India, it is a major investor in
Swiggy, one of two food delivery platforms fighting for dominance.
