TA Associates, a Boston growth private equity firm, has acquired a minority stake in BillDesk, an Indian online payment services company. Terms of the investment were not disclosed.
Founded in 2000, BillDesk works with banks, businesses and large e-commerce merchants in India.
The Mumbai-based company partners with multiple banks, card issuers, service providers and merchants in providing electronic bill presentment and payment and online payment services in India. BillDesk's products are tailored to the unique needs of specific industries and help merchants and financial institutions offer a wide range of channels for their customers to make payments and receive monies, securely and efficiently, the company said. BillDesk's network is used by over 50 of India's largest banks and by most of the large merchants across diverse industry segments, including utilities, telecom, insurance, mutual funds, travel and e-commerce.
"BillDesk has enjoyed significant growth and strong financial performance by offering simple, convenient and secure services beneficial to consumers, banks and merchants," said Dhiraj Poddar, director of TA Associates Advisory Pvt. Ltd., who will join the BillDesk's board of directors. "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."
"We are delighted to welcome TA as an investor in BillDesk," said M.N. Srinivasu, co-founder and director of 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, TA Associates' country head of India. "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."
Founded in 1968, TA Associates is a middle-market growth private equity firms. The firm has invested in over 400 companies globally and has raised more than $16 billion in capital. With offices in Boston, Menlo Park, London, Mumbai and Hong Kong, TA Associates leads buyouts and minority recapitalizations of profitable growth companies in the health care, technology, financial services, business services and consumer industries.