Prosus Subsidiary PayU Announces BillDesk Acquisition for $4.7B

Consumer internet group Prosus (PROSF) has confirmed that its payment subsidiary PayU has reached an agreement to acquire India’s digital payment provider BillDesk for $4.7 billion. The acquisition will allow the payment and fintech unit to become a key player in online payments with operations in more than 20 high-growth markets.

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The acquisition will expand Prosus’ footprint in the Indian market as BillDesk is one of the leading payment companies in the country. The acquisition of BillDesk should enable the company to meet the changing payment needs of digital consumers in India. (See Prosus stock charts on TipRanks)

Prosus is not new to the Indian market, having overseen the acquisition of CitrusPay, Paysence, and Wibmo by PayU as part of an investment spree in the country. The company has already invested close to $6 billion in the Indian tech space.

The BillDesk acquisition affirms Prosus’ ambitions of building a global consumer internet business focused on offering key products and services to millions of people. The company has also made strategic investments in food delivery, education technology, and fintech, affirming India as one of its key investment destinations.

PayU CEO Laurent Le Moal stated, “We believe this transaction will stimulate both innovation and competition within India’s digital payments industry. This will not only help to strengthen India’s digital economy, but also bring financial services to those who may have historically been excluded.”

The $4.7 billion transaction is subject to regulatory approval by the Competition Commission of India.

Yesterday, UBS analyst John Kim-sa reiterated a Buy rating on the stock with a $100.33 price target, implying 13.56% upside potential to current levels.

Consensus among analysts is a Strong Buy based on 4 Buys and 1 Hold. The average Prosus price target of $121.58 implies 37.61% upside potential to current levels.