PayU Withdraws BillDesk Acquisition
Prosus NV, a Dutch company that serves as the holding company of PayU, a prominent fintech startup, withdrew its $4.5 billion acquisition agreement with BillDesk on Oct 3.
Prosus stated in a press release that the agreement was dissolved because all the terms were not met. The report said that the planned acquisition would not be executed because certain criteria agreed upon were not satisfied by 30 Sept 2022, and the Contract has dissolved immediately in regards with the terms. The acquisition, which was disclosed in August of last year, is the greatest in the digital payments market. However, problems soon arose when opponents of PayU reported to India’s Competition Commission about the acquisition.
Furthermore, the certified fairtrade regulator then asked the parties for more details regarding the agreement. In April 2022, PayU amended its merger proposal and presented it to the CCI. In it, it shared information on the markets it served and discussed how the deal would play out on both those markets and its rivals.
Finally, the merger was approved by the competition and markets authority in September. If the acquisition had been completed, BillDesk would’ve become PayU’s 4th acquisition in the commercial ecosystem, in India.
PayU had previously signed deals with three businesses: the digital payment processors Wibmo worth $70 million, a controlling stake with the online payment platform PaySense worth $185 million, and the online payment company CitrusPay worth $130 million.
An Inc42 analysis predicts that the fintech market would reach $1.3 Trillion in size by 2025 and rise at 31percent during 2021 and 2025. By 2025, the payment systems subsegment is anticipated to represent $208 billion, or 16 per cent of this industry.
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