TA Associates Picks-up Minority Stake in BillDesk

TA Associates, a leading private equity firm, has acquired a minority stake in BillDesk, one of the leading players in the online payment services space.

Without disclosing the terms of the agreement, Dhiraj Poddar, Director, TA Associates Advisory Pvt. Ltd., said, “BillDesk has enjoyed significant growth and strong financial performance by offering simple, convenient and secure services beneficial to consumers, banks and merchants.”

Dhiraj, who joins the Board of the company added, “BillDesk has a highly skilled management team who understands the evolving payments space in India and is successfully executing on a sound business plan.  We are very pleased to have advised on this investment and look forward to working closely with BillDesk to further build value in the company.”

Khaitan & Co and Goodwin Procter LLP provided legal counsel to TA Associates while AZB & Partners served as legal counsel to BillDesk and TA Associates Advisory Pvt. Ltd. provided advisory services on the investment.

“We are delighted to welcome TA as an investor in BillDesk,” said MN Srinivasu, Co-Founder and Director, BillDesk. “We have become our industry’s leading provider by thoughtfully partnering, and aligning our interests, with key merchants, banks and other institutions, and our new relationship with TA continues that tradition. With their wealth of experience investing in the financial technology sector globally, as well as their significant resources, we anticipate a successful business partnership with TA.”

“While India is today dominated by paper-based transactions, electronic transactions are quickly gaining favor,” said Naveen Wadhera, Country Head – India and Director, TA Associates Advisory Pvt. Ltd., “There is growing acceptance of online payments by retail consumers, for products and services procured both online and offline, such as electrical service, mobile phone service and insurance. The very large Indian market, with its low but rapidly increasing online penetration, should continue to present significant growth opportunities for an established industry leader such as BillDesk.”

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Other key players in the market are EBS, CC Avenue, Prizm Payments etc. The market has witnessed increased investor interest since 2011 with Prizm Payments raising funds and EBS getting acquired by Ogone last year.