Digital payments service BillDesk’s profit declines 39% to Rs 149 crore, revenue grows to Rs 2,442 crore in FY22

As profits declined, revenue from operations for the entity grew by 15% to Rs 2,442.8 crore in FY22 compared to Rs 2,124.2 crore in FY21, according to company filings sourced from business intelligence platform Tofler.

In comparison, BillDesk’s arch rival Razorpay reported an increase in net profit to Rs 7.37 crore in FY22, compared to Rs 6.18 crore in FY21. Razorpay’s revenue from operations for FY22 stood at Rs 1,481.1 crore.

Total consolidated revenues for the BillDesk’s parent stood at Rs 2,513.8 crore for FY22, company filings showed.

This comes after Prosus, the investment arm of South African multinational Naspers, terminated its $4.7 billion acquisition of BillDesk last October, by the Dutch-listed company’s Indian subsidiary PayU Payments.

The “abrupt move” was triggered largely by the ongoing correction in global markets that rendered the year-old transaction “over-priced”, ET had reported earlier.

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Further, Prosus’ decision to back out from what would have been the second largest buyout of an Indian technology startup, came at a time when India’s anti-trust regulator – Competition Commission of India (CCI) – had approved the contours of the deal that was first announced in August 2021.For FY22, total expenses for BillDesk stood at Rs 2,294.9 crore, from Rs 1,879.9 crore in the previous fiscal. Employee costs also increased to Rs 181.2 crore in FY22 for the entity.

BillDesk provides digital payment acceptance services to businesses and charges fees for processing and settlement of these payments, which contributes a predominant share to its overall revenues.

Total revenues from providing these technology services grew 18% to Rs 1,878.6 crore in FY22. It also earns revenues through managed loyalty programmes which contributed to Rs 258.3 crore to the entity’s revenues in the previous fiscal.

According to a recent notification from the Reserve Bank of India (RBI), IndiaIdeas has also received in-principle authorisation from the regulator for its payment aggregator license.