US-based Payment giant Visa has infused a capital in BillDesk as it picks up a small stake through the investment. The infusion also takes the valuation of the firm to over $1 billion, giving it the unicorn status. As per the details, the firm has infused $250 million in Mumbai-based BillDesk and in return will be buying shares from existing investors and founders worth $80-$100 million.
Through an official statement, BillDesk said, "Visa's investment and collaboration will help BillDesk develop new product lines for its payments and loyalty businesses and also expand its footprint into other geographies." Founded in 2000 by Arthur Anderson employees MN Srinivasu, Ajay Kaushal and Karthik Ganapathy, the firm claims to be processing over $60 billion in payments per year. The company's last funding came in 2015 where it had raised money from Singapore-based investment firm Temasek and private equity firm General Atlantic.
Asia Pacific regional president at Visa Chris Clark commenting on the deal said, “This investment further reinforces our long-term commitment to India’s digital payments growth story." Using the fresh capital, BillDesk will be developing new product lines for its payments and loyalty businesses along with expanding their reach to other regions.
Interestingly, there have been some issues going around the payment industry as Visa had recently complained to the US government that the Indian government for taking sides of homegrown payment company RuPay while trying to promote it.
It will be interesting to see how BillDesk utilizes the fresh infusion and at the same time what will Visa plan further as it looks to continue making inroads through various other channels in the Indian payment segment which has seen an unprecedented growth in the past few years.
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