Business

Visa May Invest $250 Million In BillDesk

NEWS WORLD INDIA | 0
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| June 25 , 2018 , 17:46 IST

Digital payments network Visa may invest over $250 million into an Indian online payment gateway company BillDesk, as per a ToI report.

The Investment will take the company valuation up at around $1.5-2 billion. Billdesk was earlier in discussions to go for a strategic sale but ended up with financing rounds instead of selling.

“The deal is in the final stages of completion, it’s the valuation which is being negotiated,” ToI quoted a person familiar with the deal.

Mumbai based BillDesk is one of the largest online payments company in India and has been a profitable company for over a decade now. This investment will give BillDesk a strong foothold in the online merchant acquisition side of the business.

Also Read: Digital Payments Up, Debit Card Use Declines: Report

For Visa, it is a good move to invest in a profitable company like BillDesk. It will help Visa to cement its place in Indian Payments market which is growing daily as India is getting digital. Visa is an American financing Company and a leader of Digital payments system but in India visa is facing tough competition from Unified Payments Interface (UPI). New entrants to Digital payment market are WhatsApp Pay and Google’s Tez, and Flipkart owned PhonePe has made the UPI platform tough to compete with.

This investment would be a major boost to BharatQR payment. Earlier last year Visa had partnered with Billdesk to enable around 50 service providers to start accepting BharatQR payments.

BillDesk Digital Payments is a big company as its transactions are worth almost $50 billion per year. In the e-commerce segment, Bill Desk give a tough fight to PayU and CCAvenue.

Mumbai based BillDesk was founded in 2000 and has been in profit making business.