On Monday, Netherlands-based Prosus NV, the parent company of PayU Payments, said it had terminated the deal to acquire Indian payment aggregator BillDesk. It is to be noted that PayU secured CCI approval on September 5 2022. Prosus reported that certain conditions precedent were not fulfilled by September 30 2022, a long stop date.

Consequently, the agreement has terminated automatically, and the proposed transaction will not be implemented,
The said deal a year ago by Prosus and brought the company’s total investment in India to USD 10 billion. It was set to be India’s second-largest internet deal after Walmart acquired Flipkart in 2018. The Competition Commission of India (CCI) approved the deal on September 5 after weeks of delays and additional queries.

Founded by Ajay Kaushal, MN Srinivasu, and Karthik Ganapathy in 2000, BillDesk focuses on making, accepting and collecting payments. Besides facilitating over 170 payment methods as a payment aggregator, it provides biller network solutions through the Bharat Bill Payment System (BBPS) and enables the collection of recurring payments.

The deal’s termination challenges BillDesk to provide an exit to its investors. On the other hand, it slows PayU’s growth plans in the Indian payments space. According to PayU, the two entities combined were expected to process Total Payment Values (TPV) of USD 147 billion per the financial year 2020-21. As per FY21 numbers, both entities’ gross revenues stood at USD 752 billion.