Centre approves 4 Tesla models, bringing the EV maker closer to India - Deccan Herald

By Ragini Saxena

Tesla Inc. is closer to making its official debut in India after it received approval to make or import four models in India.

Tesla has had its vehicles certified as being roadworthy in India, a posting on the website of the nation’s ministry of road transport and highways showed.

“The tests ensure the vehicle matches the requirements of the Indian market in terms of emission and safety and road worthiness,” according to the site. A Tesla fan club earlier tweeted about the development, saying the cars were probably Model 3 and Model Y variants.

Gaining a foothold in the Indian car market won’t be easy considering EVs account for only 1% of the nation’s annual car sales and Tesla’s automobiles are very expensive. Scant charging infrastructure and a lack of financing for companies wanting to develop electric cars are other reasons why India is behind in the electric shift.

BREAKING : Tesla has completed homologation & received approval for 4 of it's vehicle variants in India.

While we don't have any confirmation on names yet, these are probably Model 3 & Y variants.

Will post more once we have confirmation.#TeslaIndia🇮🇳 #TCIN #Tesla pic.twitter.com/ozE5LV1u8Y

— Tesla Club India® (@TeslaClubIN) August 30, 2021

The country’s high tax regime is another roadblock. Tesla Chief Executive Officer Elon Musk last month tweeted that import duties in India are among the highest in the world and the nation treats clean energy vehicles the same as gasoline, which isn’t consistent with its climate goals. The billionaire has said a factory in India is “quite likely” if the California-based carmaker can first test the waters by importing vehicles.

We want to do so, but import duties are the highest in the world by far of any large country!

Moreover, clean energy vehicles are treated the same as diesel or petrol, which does not seem entirely consistent with the climate goals of India.

— Elon Musk (@elonmusk) July 23, 2021

Tesla’s call for a tax cut on imported EVs has received a mixed reception. Volkswagen AG’s India unit and Hyundai Motor India Ltd. have backed the move while Mahindra & Mahindra Ltd. has called for a review of import tariffs along with lower domestic levies.

Tata Motors Ltd. Chief Financial Officer P B Balaji said during an earnings call last month the government should continue with the existing EV subsidy plan, which places an emphasis on localization and affordability of electric models. India’s government has said it has no plans to cut import duties on electric vehicles.

Check out DH's latest videos:

Adblock test (Why?)

Centre approves 4 Tesla models, bringing the EV maker closer to India - Deccan Herald
Read More

Bharti Airtel clarifies on Google investment buzz; stock hits new high - Business Standard

Shares of Bharti Airtel hit a new high of Rs 652 as they rallied 5 per cent on the BSE in intra-day trade on Tuesday after the company said it has received interest from high quality investors and companies for its various businesses. The stock surpassed its previous high of Rs 644 touched on August 16, 2021.

In the past two days, the market price of Bharti Airtel has surged 9 per cent after the telecom services provider, on Sunday, announced fund raise of Rs 21,000 crore by way of rights issue, primarily to fund its dues linked to adjusted gross revenue (AGR). Further, according to a media report, Google is now in talks to make large investments in Airtel, thus boosting the stock further.

"Being a significant player in the telecom and digital industry, the company receives interests from high quality investors and companies for its various businesses," Bharti Airtel said in a regulatory filing.

It further said the company evaluates various opportunities of potential investor engagement and takes decisions in a judicious manner.

The company made this clarification with respect to a news article which appeared on the Times of India's online portal on August 28, 2021. "We would like to submit that the Company, as a matter of policy, does not comment on media speculation/ report(s)," the company said.

As a responsible corporate that follows the highest standards of corporate governance, the company is fully conscious of its disclosure obligations under SEBI regulations and is committed to act in consonance with the same, it added.

According to the repor, American internet giant Alphabet Inc’s Google could well be on its way to making "substantial investments, running into several thousands of crores of rupees", into Bharti Airtel, Jio’s main rival.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Adblock test (Why?)

Bharti Airtel clarifies on Google investment buzz; stock hits new high - Business Standard
Read More

GDP growth in Q1 records 20.1% recovery on low base - Times of India

NEW DELHI: Economic growth soared to a record high in the April-June quarter due to a low base and a rebound in manufacturing and construction, as well as robust growth in agriculture, which has remained resilient throughout the pandemic.
Data released by the National Statistical Office (NSO) on Tuesday showed GDP growth rose 20.1% in the three months to June, the first quarter of the 2021-22 fiscal year, compared with a record contraction of 24.4% in the year-ago period. It was also higher than 1.6% growth recorded in January-March 2021. Experts said while the recovery is gathering momentum, the first quarter numbers should be interpreted with some caution as the economy is still to recover lost ground after the bruising impact of the lockdows and curbs to prevent the spread of the Covid-19 infection.

The latest June quarter numbers are close to the Reserve Bank of India’s forecast of 21.4%.
A spate of indicators in the past few months have shown that several sectors have staged a robust rebound although some sectors, particularly in the crucial services segment, are yet to recover fully.
“The Q1:2021-22 data reaffirms the government’s prediction of an imminent V-shaped recovery made last year at this time. Increase of 20.1% in GDP -- despite the intense second wave in the months of April-May -- highlights the continued economic recovery,” said Krishnamurthy Subramanian, chief economic adviser.
Subramanian had been consistently maintaining since last year that the economy would stage a V-shaped recovery despite the lockdowns. The June quarter numbers are also expected to validate the government’s confidence of a sharp rebound and its pursuit of reforms to bolster growth against the backdrop of a raging pandemic.
Economists said India remains one of the select few countries that have witnessed growth (year-on-year) for three quarters in a row and is among the fastest growing economies during the April-June quarter.
The manufacturing sector grew 49.6% year-on-year in the June quarter, compared with a 36% contraction in the year earlier quarter while the construction sector rose 68.3%. The farm sector grew 4.5% in the three months to June compared to the 3.5% posted in the year earlier period.
While several indicators have shown robust signs of recovery the overall economy still has a long way to catch up with the pre-pandemic levels. Aditi Nayar, principal economist at ICRA, said the sharp year-on-year expansion in the June quarter is analytically misleading, with a sequential slowdown of 16.9% over Q4 FY2021 and a shortfall of 9.2% relative to the pre-Covid level of Q1 FY2020.

Adblock test (Why?)

GDP growth in Q1 records 20.1% recovery on low base - Times of India
Read More

Maruti Suzuki cuts September production by 60% due to semiconductor shortage - Moneycontrol.com

Maruti Suzuki, India’s largest carmaker, has hikes prices of the Swift hatchback in the range of Rs 8000 to 15000 with effect from July. The company is contemplating further hikes on other models. (Image: Maruti Suzuki)

Maruti Suzuki, India’s largest carmaker, will see 60 percent cut in production in September due to shortage in supply of semiconductors. This is the second consecutive monthly cut seen by the company due to the chip shortage.

“Owing to a supply constraint of electronic components due to the semiconductor shortage situation, the company is expecting an adverse impact on vehicle production in the month of September in both Haryana and its contract manufacturing company, Suzuki Motor Gujarat in Gujarat,” Maruti Suzuki (MSIL) said in an exchange filing.

“Though the situation is quite dynamic, it is currently estimated that the total vehicle production volume across both locations could be around 40 percent of normal production,” MSIL added.

Though MSIL did not specify its normal production levels, the company’s and that of SMG’s total July output stood at 170,719 units. Its August output is expected to be lower than July due to the partial shutdown for some days announced at the Gujarat plant.

On August 4, the contract manufacturing company Suzuki Motor Gujarat (SMG) said it will shut production for three consecutive Saturdays in August and may also bring down working to just one shift owing to the semiconductor shortage.

SMG, which is owned by Suzuki Motor Company, Japan, supplies fully built cars such as Swift and Baleno to Maruti Suzuki India (MSIL) for sale. This was for the first time that India’s largest carmaker has called out a production issue due to non-availability of chips.

Maruti’s output-related guidance for September comes at a time when the carmaker said it will carry out a price increase from September, which will be a substantial hike. This will also be the fourth price increase by the car market leader since January 2021.

Maruti’s present inventory with its dealers is lower compared to demand, according to dealers. The September cut in output will further worsen supplies thereby pushing the waiting period on models. With no production cut guidance given by Hyundai, Kia and Tata Motor, Maruti Suzuki’s market share, at least at the wholesale level, is expected to see some pressure.

Until July-end MSIL had been managing production flawlessly despite the crunch in semiconductor availability. Its peers like Mahindra & Mahindra (M&M), MG Motor and Ford India had to undertake production cuts due to the chip shortage.

Adblock test (Why?)

Maruti Suzuki cuts September production by 60% due to semiconductor shortage - Moneycontrol.com
Read More

PayU acquires BillDesk for $4.7 bn in one of largest Indian fintech deals - Business Standard

Fintech services provider PayU will acquire BillDesk for $4.7 billion. Prosus NV, the global consumer internet group and one of the largest technology investors in the world, announced today that an agreement has been reached between PayU and the shareholders of the Indian digital payments provider BillDesk to acquire the latter. This will be one of the largest deals in the Indian fintech sector.

The proposed acquisition will see PayU, the payments and fintech business of Prosus which operates in more than 20 high-growth markets, become one of the leading online payment providers globally by total payment volume (TPV).

PayU focuses on high-growth markets and operates across three distinct businesses: Payments for domestic and cross border transactions, credit solutions for consumers and small businesses. and strategic investments in innovative fintech companies. Including Remitly in the US and the building of a full financial services ecosystem in India.

BillDesk, founded in 2000, is an Indian success story and one of the leading payment businesses in the country.

Together, PayU India and BillDesk will be able to meet the changing payments needs of digital consumers, merchants and Government enterprises in India and offer state-of-the-art technology to even more of the excluded sections of society, while adhering to the regulatory environment in India and delivering robust consumer protection.

The transaction, which is subject to approval from the Competition Commission of India, builds on previous successful acquisitions by PayU in India, including CitrusPay, Paysense and Wibmo.

This acquisition brings Prosus's investment into India to $10 billion. So far it has invested $6 billion in the Indian tech ecosystem.

Bob van Dijk, Group CEO of Prosus, said: “We have a long and deep relationship with India, having supported and partnered with some of its most dynamic entrepreneurs and new tech businesses since 2005. BillDesk exemplifies the ambition and expertise of Indian entrepreneurs, who are among the best in the world, with exceptional abilities to build products and services and understand scale and value. This is critical in a country as vast as India."

He further added, “Our announcement today reflects Prosus’s desire to build valuable, global consumer internet businesses that provide useful products and services for millions of people in their everyday lives. Along with classifieds, food delivery, and education technology, payments and fintech is a core segment for Prosus, and India remains our number one investment destination.”

Laurent Le Moal, CEO of PayU, said: “We believe this transaction will stimulate both innovation and competition within India’s digital payments industry. This will not only help to strengthen India’s digital economy, but also bring financial services to those who may have historically been excluded. This ambition is fully aligned with the Government of India’s vision of ‘Digital India’ and is a key objective for PayU across all the communities we serve globally."

M N Srinivasu, Co-founder of BillDesk, said: “BillDesk has been a pioneer in driving digital payments in India for well over a decade. This investment by Prosus validates the significant opportunity in India for digital payments that is being propelled by innovation and the progressive regulatory framework put into place by the Reserve Bank of India, India’s central bank.

According to the FY21 annual report of the Reserve Bank of India (RBI), the number of transactions for digital retail payments has grown by more than 80% from 24 billion in 2018-19 to 44 billion to 2020-21.

Over the next three years, RBI expects more than 200 million new users to adopt digital payments with the average annual transactions per capita rising tenfold from 22 to 220.

PayU India and BillDesk run complementary businesses within India’s digital payment industry. Together, the two expect to create a financial ecosystem handling four billion transactions annually - four times PayU’s current level in India.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Adblock test (Why?)

PayU acquires BillDesk for $4.7 bn in one of largest Indian fintech deals - Business Standard
Read More

India records best-ever quarterly GDP growth at 20.1% in Q1 - Times of India

Aug 31, 2021, 06:21PM ISTSource: Mirror Now

India recorded the best-ever quarterly GDP growth at 20.1% in Q1 as against 1.6% in the previous quarter. According to govt data, the core sector growth is at 9.4% in July as against (-) 7.6% in the previous year. Meanwhile, India's fiscal deficit in April-July, the first four months of the fiscal year, stood at Rs 3.21 lakh crore ($43.98 billion), or 21.3 percent of the budgeted target for the whole year.

Adblock test (Why?)

India records best-ever quarterly GDP growth at 20.1% in Q1 - Times of India
Read More

July core sector output grows at 9.4% even as the low base effect wanes - Economic Times

The output of eight core sectors rose by 9.4%, in July on the back of low base seen in the corresponding month of 2021.

Seven out of the eight sectors have shown to have positive growth, in the wake of relieving restrictions post the second wave and reviving demand. Except the crude

industry, all the others have shown an uptick YoY.

Cement industry showed a growth of 21.8 percent while the steel industry grew by a good 9.3 percent.

The core sector output grew 9.4% despite a waning base effect which shows that the economy is getting back to normalcy.

Index of Eight Core Industries for April 2021 is revised up to 62.6% from its provisional level 56.1%.

The growth rate of ICI during April-July 2021-22 was 21.2% (P) as compared to the corresponding period of last FY.

The GDP numbers for the first quarter of FY22 are awaited today which are to be released at 5:30pm. The data which will give an insight into how the second wave impacted the economy from April-June.

The core sector output comprises of the eight prime industries namely coal, crude oil, natural gas, refinery products, steel, cement, fertilizer and electricity. The output of these sectors altogether make up 40 percent of the Index of Industrial production (IIP).

Adblock test (Why?)

July core sector output grows at 9.4% even as the low base effect wanes - Economic Times
Read More

Global economy not out of the woods yet, says RBI Governor Shaktikanta Das - Moneycontrol

Global economy suffered a jolt with the onslaught of the COVID-19 pandemic. The crisis isn't over yet.

Shaktikanta Das_RBI_Reserve bank

Reserve Bank of India (RBI) Governor Shaktikanta Das on August 3 said the global economy is showing some signs of recovery but the problems aren't over yet.

"While there are signs of recovery, we are not yet out of the woods," said Das speaking at the 21st FIMMDA-PDAI Annual Conference on Tuesday.

Global economy suffered a jolt with the onslaught of the COVID-19 pandemic. The crisis isn't over yet.

Noting that the sudden shock delivered by the pandemic called for swift and

decisive policy responses, Das said central banks across the globe responded by lowering interest rates, expanding their balance sheets through largescale purchase of government securities (G-sec) and other assets and injecting vast amounts of liquidity into the financial system.

“Many central banks also implemented measures targeting specific market segments that were witnessing heightened stress. These measures were, in many cases, complemented by regulatory relaxations (lower capital and liquidity requirements) aimed at supporting credit flow from banks and other financial intermediaries and at stabilizing the financial system and restoring confidence in financial markets,” Das said.

To fight the COVID, the RBI too had unleashed a raft of measures to lift the faltering economy. This included an array of liquidity measures and loan restructuring facilities to help the stressed borrowers. In addition to this, the RBI also offered a moratorium facility on all term loans during the first wave of the COVID.

Through various measures, the Reserve Bank completed the borrowing programme in a non-disruptive manner and also created congenial conditions for other segments of the financial market such as the corporate bond market, Das said.

“The stabilisation of credit spreads across the rating ladder resulted in issuances of corporate bonds to the tune of Rs7.72 lakh crore in 2020-21,” Das said.

Moneycontrol News

Adblock test (Why?)

Global economy not out of the woods yet, says RBI Governor Shaktikanta Das - Moneycontrol
Read More

Indias GDP growth accelerates to 20.1% in Q1FY22 on low base - Business Standard

Indian economic growth touched a record high in the quarter through June, reflecting a very weak base last year, a rebound in consumer spending, and improved manufacturing in spite of a devastating second wave of Covid cases, government data showed on Tuesday.

Gross domestic product rose 20.1% in the three-month period, compared with a record contraction of 24.4% in the same quarter a year earlier.

"GDP at Constant (2011-12) Prices in Q1 of 2021-22 is estimated at Rs 32.38 lakh crore, as against Rs 26.95 lakh crore in Q1 of 2020-21, showing a growth of 20.1 percent as compared to contraction of 24.4% in Q1 2020-21. Quarterly GVA at Basic Price at Constant (2011-12) Prices for Q1 of 2021-22 is estimated at Rs 30.48 lakh crore, as against Rs 25.66 lakh crore in Q1 of 2020-21, showing a growth of 18.8%," said Ministry of Statistics & Programme Implementation in a statement.

The rebound came despite the drag from the deadly second wave of the coronavirus, which forced states across India to reimpose localised lockdowns and stop mobility completely from late April to early June.

But unlike during the nationwide lockdown last year, repeat state-level lockdowns had a less pronounced impact on the economy as they left more room for consumers to spend.

This is India's fastest growth since official quarterly data started being released in the mid-1990s, which is up sharply from 1.6% in the previous quarter, but a bit slower than the Reserve Bank of India's 21.4% projection.

"The GDP figures for the first quarter came in marginally weaker than our expectations (21.7% growth). However, economic activity has been reviving since July and has picked up momentum. As vaccination pace picks up we expect the momentum to pickup further, although remain wary on the evolution of delta variant cases," Upasna Bhardwaj, senior economist, Kotak Mahindra Bank told Reuters.

D K Srivastava, Chief Policy Advisor, EY India, said: “The overall real GDP growth in Q1FY22 at 20.1% could not make up for the large contraction of (-)24.4% in the corresponding quarter of the COVID year resulting in a lower real GDP magnitude by a margin of Rs 3.3 trillion as compared to the Q1FY20 level. The positive news from the output side came from agricultural and electricity, gas, water supply et. al. sectors which did relatively well as compared to even their 1Q 2019-20 levels. On the demand side, a positive outcome is noticeable in exports. The main disappointment comes from the contribution of the government sector, both from the demand and output sides."

The period from April-June 2021 had less stringent lockdown norms than in the same period of 2020. These partial lockdowns were mainly regional in nature. Besides, a steady growth in exports as well as robust performance of agricultural sector is expected to give a push to GDP growth.

"The lockdown instructions in various States were duly considered by the National Statistical Office. The impact on economic activities and the data collection mechanisms owing to COVID-19 pandemic has an effect on the Quarterly GDP estimates also. The impact of these measures on overall economic activity are embedded in source data," said National Statistical Office.

According to the NSO data, gross value added (GVA) growth in the manufacturing sector accelerated to 49.6 per cent in the first quarter of 2021-22, compared to a contraction 36 per cent a year ago.

Farm sector GVA growth was up at 4.5 per cent, compared to 3.5 per cent earlier.

Construction sector GVA grew by 68.3 per cent compared to 49.5 per cent contraction earlier. Mining sector grew by 18.6 per cent, as against a contraction of 17.2 per cent a year ago.

Electricity, gas, water supply and other utility services segment grew by 14.3 per cent in the first quarter of this fiscal, against 9.9 per cent contraction a year ago.

Similarly, trade, hotel, transport, communication and services related to broadcasting grew by 34.3 per cent compared to 48.1 per cent contraction earlier.

Financial, real estate and professional services grew by 3.7 per cent in Q1 FY22 compared to a contraction of 5 per cent.

Public administration, defence and other services grew at 5.8 per cent during the quarter under review, compared to (-) 10.2 per cent a year earlier.

Adblock test (Why?)

Indias GDP growth accelerates to 20.1% in Q1FY22 on low base - Business Standard
Read More

Taking Stock: Sensex, Nifty hit fresh record high; BSE m-cap crosses Rs 250 lakh crore - Moneycontrol.com

Indian benchmark indices continued their record-run for the second straight session on August 31 amid mixed global cues. At close, the Sensex was up 662.63 points or 1.16% at 57,552.39, and the Nifty was up 201.20 points or 1.19% at 17,132.20.

The total market capitalisation of BSE-listed companies crossed Rs 250 lakh crore for the first time. It rose by Rs 2.68 lakh crore to Rs 249.98 lakh crore from Rs 247.30 lakh crore in the previous session.

"Led by bulls, domestic indices breached record highs amid broad-based buying due to continuation of Fed’s dovish policy and the expected release of domestic GDP data. Many business activities have rebound to pre-Covid levels, the RBI had forecast June quarter GDP to grow at 21.6% on a YoY basis," said Vinod Nair, Head of Research at Geojit Financial Services.

Bharti Airtel, Bajaj Finance, Eicher Motors, Hindalco Industries and Shree Cements were the top Nifty gainers. Tata Motors, Nestle, IndusInd Bank, Reliance Industries and BPCL were among the top losers.

The broader market underperformed the benchmarks, but BSE midcap and smallcap indices gained 0.8 percent each.

All the sectoral indices ended in the green, with IT and metal indices up 1 percent each.

Stocks & sectors

On the BSE, IT, power, healthcare, metal, oil & gas indices rose 1 percent each.

Among individual stocks, a volume spike of more than 300 percent was seen in Ipca Laboratories, AU Small Finance Bank and Apollo Hospitals.

Long buildup was seen in Ipca Laboratories, Can Fin Homes and Syngene International, while short buildup was seen in Au Small Finance Bank, Havells India and Hindustan Aeronautics.

More than 200 stocks, including TCS, JSW Energy, SRF, HUL and Bajaj Finserv, hit a 52-week high on the BSE.

Technical View

Nifty formed a bullish candle and continued its winning streak for the seventh consecutive session.

"It has to continue to hold above 17,000 zones to extend the move towards 17,250 and 17,500 zones, while on the downside support is seen at 16,950 and 16,750 levels," said Chandan Taparia, Vice President | Analyst-Derivatives, Motilal Oswal Financial Services.

Outlook for September 1

Ashis Biswas, Head of Technical Research at CapitalVia Global Research:

The market witnessed the continuation of a positive trend, after sustaining above the level of 16900. The market has reached an important resistance level of 17000. It is suggested that if the market sustains above the level of 17000, the market expects to gain momentum, leading to an upside projection till 17200-17250 level.

The momentum indicators like RSI and MACD are positive and market breadth has improved, further strengthening a short-term bullish outlook.

Ajit Mishra, VP - Research, Religare Broking:

It’s been a phenomenal move in Nifty as it inched from 16,000 to 17,000 in August, after spending nearly two months in consolidation. Going ahead, participants will first react to GDP data in early trade on Wednesday i.e. September 1. Besides, the auto sales will also start pouring in.

We reiterate our bullish view on markets, with a focus on stock selection. The catch-up move in banking would now be the next deciding factor for the prevailing momentum to continue.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Adblock test (Why?)

Taking Stock: Sensex, Nifty hit fresh record high; BSE m-cap crosses Rs 250 lakh crore - Moneycontrol.com
Read More

Q1 GDP: India's economy grew 20.1% in April-June quarter; manufacturing sector the bright spot - Moneycontrol.com

India's real gross domestic product (GDP) grew by 20.1 percent in the April-June quarter of the fiscal year 2021-22, a record quarterly print on the back of a low base last year, data released on August 31 showed.

GDP contracted by 24.4 percent in the April-June quarter in FY2021 as the country went into a lockdown to curb the spread of the coronavirus. It was the steepest quarterly contraction in the economy in independent India's history.

The GDP print of 20.1 is at par with consensus estimates. As per a poll of 41 economists by news agency Reuters, India’s GDP was expected to rise 20 percent in April-June 2021.

The Reserve Bank of India had projected Q1 GDP to grow by 21.4 percent.

"The numbers are a lot better than what we had expected," said Probab Sen, former Chief Statistician and head of a standing committee tasked with overhauling India's statistical data collection.

Data released by the National Statistical Office on August 31 showed that the real gross value added for Q1 rose by 18.8 percent. The biggest year-on-year rise was in the construction sector at 68.3 percent. This sector saw the steepest fall in the same period last year at 49.5 percent as construction activity across the country had come to a halt.

Second wave impact blunted by manufacturing rise

Manufacturing, which fell 36 percent in April-June last year, bounced back to grow by 49.6 percent.

Trade, hotels, transport, communication and services related to broadcasting, which tanked 48.1 percent in April-June last year, grew by 34.3 percent in Q1FY22, indicating that touch services sectors like hotels, hospitality and tourism continue to be affected by the Covid-19 pandemic and will take time to recover.

Agriculture, the only sector which showed growth in Q1FY21 at 3.5 percent, grew by 4.5 percent in the first quarter of FY 22.

Though better, sectoral and headline numbers indicate that the recovery has not been as sharp as the contraction in the previous year, mostly due to the furious second COVID wave that peaked in May.

The starkest example is the household consumption, typified by Private Final Consumption Expenditure. As a rate of GDP, it was 55.1 percent compared with 55.4 percent even in the lockdown quarter. It remained nearly the same in a quarter with nationwide lockdown compared to a quarter in which there was economic activity.

However, Government Final Consumption Expenditure, as a rate of GDP, fell to 13 percent from 16.4 percent in the same period last year.

The Modi government's infrastructure and public investment push showed in the Gross Fixed Capital Formation figures, which came at 31.6 percent against 24.4 percent in the same period of the previous fiscal.

Adblock test (Why?)

Q1 GDP: India's economy grew 20.1% in April-June quarter; manufacturing sector the bright spot - Moneycontrol.com
Read More

Brokerages are Bullish on Maruti Suzuki; See 33% Upside - Investing.com India

By Aditya Raghunath

Investing.com -- On August 30, India’s largest automaker Maruti Suzuki India Ltd. (NS:)’s shares closed up 2.67% after it announced that it would hike prices on all models in September. “We wish to inform you that over the past year the cost of the company's vehicles continues to be adversely impacted due to an increase in various input costs. Hence, it has become imperative to pass on some impact of the additional cost to the customers through a price rise,” Maruti Suzuki India (MSIL) said in a stock exchange filing.

The price rose even as the company said that its September production would be further affected due to lockdowns in Malaysia that have worsened the shortage in semiconductors. This would mean that the company is likely to produce only between 60,000 – 90,000 vehicles in the month, a cut of around 60%. For August, the company is expected to produce between 110,000 -120,000 vehicles, a cut of 30-40%.

The last one month has seen Maruti Suzuki lose almost 4% in its share price. However, brokerages are bullish on the stock. Two weeks back, Goldman Sachs (NYSE:) gave a buy call on the stock with a target price of Rs 9,036, an upside of almost 33%.

Motilal Oswal (NS:) is also bullish on the stock with a target of Rs 8,200.

Adblock test (Why?)

Brokerages are Bullish on Maruti Suzuki; See 33% Upside - Investing.com India
Read More

Stock Market Today: Nifty Hits 17,000 for First Time, Fastest 1,000-point Gain Ever - News18

The benchmark NSE Nifty50  hits fresh record high at 17,018, up 81.40 points, 0.48 per cent. The benchmark Nifty50 added 1000 pts in just 19 days. This sharp rally is propelled by positive Asian cues. The 30-share BSE Sensex too surged to a new high of 57,124.78, surging 235 points. The Nifty has risen nearly 2 per cent in the last five days. On NSE, Adani Port, Bharti Airtel, Bajaj Finserv were the top gainers. On the flip side, Tata Motors, Nestle India were among losers. India VIX, the volatility index, was up 4 per cent at 13.8 levels on Tuesday. On the sectoral front, the Bank Nifty index added half a per cent to trade at 36,505.15. The top Nifty sectoral gainers were Nifty Metal, Nifty PSU Bank, and Nifty Healthcare index, rising up to 1.24 per cent. India VIX, the volatility index, surged nearly 4 per cent to 13.84 levels. For the Nifty to reach an all time high of 17,000, it took just 20 trading session.

“US equities extended gains mostly with S&P 500 and Nasdaq recording fresh highs. Notably, strong momentum in technology and consumer discretionary stocks aided market. 10-Year USA treasury yield softened further by 3bps to 1.28%, which aided rate sensitive sectors like technology. In term of key economic data, pending home sales data for July was published, which fell 1.8% MoM as against consensus estimate of 0.5 per cent growth. In our view, August month nonfarm payroll data would be the most crucial data point in coming days as Mr. Powell stressed about sustainability of job recovery before finalizing timeframe for scaling back monthly asset purchase programme. Consensus estimate is 7.5 lakh jobs addition in Aug’21 with unemployment rate at 5.2 per cent. Additionally, consumer confidence data, manufacturing and services PMI will also be in focus," Binod Modi,  head strategy at Reliance Securities said.

At 1252 hours IST, the BSE Sensex was up 306.57 points, or 0.54 per cent to 57,196.33. Nath Bio Genes, 3 M India are top gainers on BSE and on the other hand, IFCI, Sundaram Fasteners, Sudarshan Chemical were among the laggards.

The 30-share BSE benchmark Sensex has surged over 4,000 points so far this month to scale the 57,000 mark for the first time on Tuesday as the bull run continues in the equity market.  The sharp rally in both BSE and NSE reflects the strong sentiment in the market despite the ongoing global and domestic worries.

Indian and other markets, last week, were acting cautiously as they were seeking clarity about the US tapering of $120 billion asset purchase every month. The markets were looking upto Jeremy Powell’s speech at most awaited Jackson Hole Symposium.

Powell speaking on last Friday did not give any definite timeline for the tapering but said this will happen this year only. So the clarity about the tapering and Powell’s dovish stance boosted the spirit of the markets today.

Riding on the back of Powell’s speech, at 1324 hours,  the Japanese shares also hit a 3-week-high. The Nikkei share average climbed 1.08 per cent to 28,089.54, closing above the 28,000 level for the first time since Aug. 12. The broader Topix gained 0.54 per cent to 1,960.70. In early trade, the BSE Sensex  and Nifty50 both opened in green, the BSE Sensex was up 194.75 points, or 0.34 per cent at 57,000 while the Nifty50 was up 28.59 points, or 0.17 per cent at 16,959.

Now, the GDP number scheduled to come today will set the course of the Indian market from tomorrow onwards. As the GDP growth of the country in the first quarter of FY22 is expected to be in double digit.

Read all the Latest News, Breaking News and Coronavirus News here

Adblock test (Why?)

Stock Market Today: Nifty Hits 17,000 for First Time, Fastest 1,000-point Gain Ever - News18
Read More

India GDP: 5 things to watch out for in Q1FY22 GDP to be released today - Moneycontrol

Rating agencies and the central Bank expect India’s GDP to have grown 18-22 percent in Q1 FY22, but this is in comparison with a low base a year ago when economic activity was devastated by the pandemic-induced lockdowns

The share of agriculture in GDP shrinks while that of industry is supposed to increase.

The Centre is scheduled to declare the GDP estimates for the first quarter (Q1)  of 2021-22  later in the day. The economy is expected to have clocked a record double-digit growth in the June quarter. However, the high growth would be in comparison with the April-June 2020 quarter last year, when the economy contracted 24.4 percent because of stringent pandemic-induced lockdowns.

Polls and predictions by several rating agencies and the central Bank predict that India’s GDP will grow 18-22 percent in Q1 FY22.The  most optimistic forecasts have come from the Reserve Bank of India, which has projected a growth of 21.4 percent in the quarter.

 Ratings agency ICRA has forecasted a 21 percent growth in the first quarter while SBI's Ecowrap has pegged the April-June  quarter growth at 18.5 percent. The first quarter results slated to be released tomorrow, will be the official estimates offering an assessment of the damage caused by the second wave of the Covid19 pandemic which was said to be much more severe than the first wave. 

 Here  are the key indicators to watch out for in the GDP data :

 Agriculture: Agriculture has been the only saving grace in the economy in the previous quarters amid the dismal GDP performance of other sectors. In a way, India's agriculture sector saved the economy last fiscal. Growth in agriculture is expected in the first quarter but will it be able to offset the damage suffered by the other sectors because of the second wave of the pandemic. 

 However, growth in the farm sector could be slow as the infections had penetrated the rural areas during the second wave. Agriculture and allied activities had posted a growth of 3.4 per cent at constant prices in the first quarter of 2020-21. Farm sector growth in the first quarter of 2019-20 was 3 percent at constant prices.

 Manufacturing: A major pain point for India has been the slow recovery of the manufacturing sector. Manufacturing contraction of 39.3 per cent in the first quarter (April -June) of last year from 3 per cent expansion in Q1 2019-20.  The manufacturing sector finally bounced back 6.9 percent growth in the January-March (Q4) quarter of last fiscal. Manufacturing is expected to grow by a large margin in the first quarter of FY22 . The emergence of the second wave and restrictions by state governments had forced some units to shut down. But since the data will be calculated on the basis of April-June 2020 from a year back, it is expected to show a major growth.

 Investment and Infrastructure: Investment and infrastructure growth which is reflected by Gross fixed capital formation (GFCF) is vital to kick off the cycle of job creation. GFCF was at 32 percent of the GDP in Q1 of 2019-20 but had dropped to 22.3 percent of GDP in the first quarter of last year.  A pick up in the investment demand is crucial for the economic revival. Investment demand had been slowing even before Covid-19 struck India as overall economic growth slowed and the private sector lost confidence. 

 Consumption: Private Final Consumption Expenditure (PFCE) gauges household spending. In the first quarter of 2019-20, PFCE accounted for 56.4 percent of the GDP but it dropped to 54.3 percent in the April-June quarter of the last fiscal due to the first wave of the pandemic and the resultant lockdown in the country. It however improved to 55.4 percent of GDP in the last quarter of 2020-21. A fall in  spending came on the back of massive job and salary cuts that occurred due to the lockdowns, prompting households to put off the purchases and save instead. With the devastation that the severe second wave exposed the economy to, household expenditure may continue to remain muted. Revival this segment is critical to India’s economic growth.   

 Services: Trade, hotel, transport, communication & services related to broadcasting is said to have borne the maximum brunt of the COVID-19 pandemic. The sector reported a massive contraction of 47.6 percent in the June quarter against a 3.5 percent growth in the corresponding quarter of 2019-2020. The sector did manage to narrow the contraction in the final quarter of 2020-21 by shrinking 2.3 percent.  Just when the sector had started trotting back with the easing of restrictions, the second wave of the pandemic derailed the sector. To aid the sector in its recovery, the Centre on March 31 this year had extended the scope of the Rs. 3 lakh crore ECLGS to Hospitality, Travel and Tourism, Leisure, and Sporting sectors.

Shreeja Singh

Adblock test (Why?)

India GDP: 5 things to watch out for in Q1FY22 GDP to be released today - Moneycontrol
Read More

Prosus acquires Indian payments giant BillDesk for $4.7B, will merge with its PayU fintech group - TechCrunch

More major consolidation underway in the world of payments: Prosus — the Dutch tech giant that bundles together Naspers’ fintech, e-commerce and other international investments and businesses outside of South Africa (including a big stake in Tencent) — today announced that it would pay $4.7 billion to acquire BillDesk, a payments provider based in India. Prosus plans to combine BillDesk with PayU, its existing global fintech and payments business, which already has a strong presence in India. The deal has been rumored to be in the works since about July.

The proposed acquisition will make PayU one of the bigger online payment providers globally with some $147 billion in payment volume annually. But the proposed all-cash deal is not only a significant consolidation move in the world of payments: it also underscores Prosus’ continuing focus on developing markets and specifically India. Prosus said that the deal — one of the biggest ever made by Prosus, and one of the biggest M&A moves in India — will give its fintech holdings in India a cumulative investment value of over $10 billion.

That is part of a long-term strategy for Prosus (and Naspers) that stretches back nearly a decade involving a number of other acquisitions and investments in startups — including DotPe and Indiagold — in the region.

The proposed acquisition will require approval from the Indian regulator Competition Commission of India. In a call with reporters Tuesday, Prosus and PayU executives said they don’t expect much hurdle in receiving the approval as PayU and BillDesk offer complimentary businesses. BillDesk’s network is used by India’s largest banks and by a large number of merchants across utilities, telecom, insurance, mutual funds, travel and e-commerce verticals.

“Payments and fintech is a core segment for Prosus and India remains our number one investment destination,” said Bob van Dijk, group CEO of Prosus, in a statement. PayU — formed out a combination of various interests in fintech and payments that Naspers (and then Prosus) had acquired over several years, is currently active in some 20 markets.

India represents a huge market for financial services, with a digitally-savvy consumer base with a rapidly expanding middle class with disposable income.

Within that, PayU has positioned itself as a strong player. Specifically, it has been highly competitive in the Indian online merchant acquiring market – both on price and in-field sales effort. PayU India has a dominant share in the payments gateway business where it traditionally competed with BillDesk and CCAvenue (owned in part by Infibeam) — and of lately, Sequoia Capital India-backed RazorPay.

Have a lot of respect for what Ajay and Vasu have built quietly over the years, congrats on the huge acquisition!

The Indian payments ecosystem is on 🔥

— Harshil Mathur (@harshilmathur) August 31, 2021

BillDesk has been around since 2000 and its investors had included Visa, General Atlantic, and the State Bank of India. PitchBook estimated that its valuation was around $1.53 billion in 2019 when it last raised money. Tracxn estimated that the founders still owned just under 30% of the company ahead of this acquisition.

BillDesk, already a big contractor for several government departments, is among the firms that has applied for the license of NUE, a new retail payments networks proposed for India that is expected to compete with established UPI railroads. BillDesk has teamed with Amazon, ICICI Bank, Axis Bank, Pine Labs, and Visa for the license.

Anirban Mukherjee, CEO of PayU India, suggested on a call today that Prosus may explore expanding BillDesk’s business outside of the world’s second most populous nation — though a concrete decision hasn’t been made, he cautioned.

“We believe this transaction will stimulate both innovation and competition within India’s digital payments industry,” said Laurent Le Moal, CEO of PayU, in a statement. “This will not only help to strengthen India’s digital economy, but also bring financial services to those who may have historically been excluded. This ambition is fully aligned with the Government of India’s vision of ‘Digital India’ and is a key objective for PayU across all the communities we serve globally.”

PayU today said that its domestic and cross-border payments business as of March 2021 was up 51% year-on-year across its operations in India, Latin America and EMEA, a mark of the overall boom that we have seen in the global digital payments market in the wake of the Covid-19 pandemic.

Other businesses PayU operates include credit solutions across India and five other markets. Prosus itself is also an active investor, with stakes in remittance company Remitly and others — representing a pipeline for strategic partnerships, but also potentially future acquisitions.

Adblock test (Why?)

Prosus acquires Indian payments giant BillDesk for $4.7B, will merge with its PayU fintech group - TechCrunch
Read More

Prosus doubles down on India with $4.7 bln deal for BillDesk - Reuters India

A logo of Prosus is diplayed at Amsterdam's stock exchange building as Prosus begins trading on the Euronext stock exchange in Amsterdam, Netherlands, September 11, 2019. REUTERS/Piroschka van de Wouw/File Photo

AMSTERDAM, Aug 31 (Reuters) - Prosus NV (PRX.AS) doubled down on its investment in India on Tuesday with a $4.7 billion deal for payments platform BillDesk, making it one of the biggest players in the country's fast-growing fintech sector.

Prosus, Europe's answer to SoftBank and its Vision Fund, said BillDesk will complement its own PayU business, which operates in India, Latin America and Europe.

India has been a major focus for Netherlands-based Prosus but the BillDesk deal is its biggest investment there to date.

"This is really a transformative transaction for PayU and its position as one of the leading payment and fintech providers in India and actually in the world," Prosus CEO Bob van Dijk said on a media call.

Prosus, which was spun out of Naspers (NPNJn.J) of South Africa in 2019, owns stakes in consumer internet companies in online marketplaces, educational software, food delivery and fintech. It operates some of the companies.

Best known for its 28.9% stake in Tencent (0700.HK) of China, Prosus is betting that its long-term investments can fill a yawning valuation gap and give it the same name recognition as one of the world's most aggressive technology investors.

The rapid growth of the payments industry worldwide has been helped by rising demand during the pandemic.

PayU processed $55 billion in payments in the year ended March 31, 2021, a 51% increase on the previous year.

The companies did not give a comparative figure for BillDesk, but Prosus said it was more than $90 billion. BillDesk made a net profit of 2.71 billion Indian rupees ($37.05 million) for the year ended March 31 2021, suggesting an acquisition price of more than 100 times earnings.

PayU CEO Laurent le Moal defended the price tag, arguing it makes sense given the rapid growth in BillDesk's market, its leadership position, its current profit margins and the potential for the combined companies to enter adjacent markets.

The deal to buy BillDesk, which was founded in 2000, is subject to regulatory approvals, including by the Competition Commission of India.

Prosus said Tuesday's acquisition brings the total it had invested in the Indian market to more than $10 billion.

In India, it is a major investor in Swiggy, one of two food delivery platforms fighting for dominance.

($1 = 73.1500 Indian rupees)

Reporting by Toby Sterling; Editing by Mark Potter, Edmund Blair and Susan Fenton

Our Standards: The Thomson Reuters Trust Principles.

Adblock test (Why?)

Prosus doubles down on India with $4.7 bln deal for BillDesk - Reuters India
Read More

Airtels Rs 21k-cr rights issue may open exit door for Voda Idea: Analysts - Business Standard

Stock Market Today: Sensex Touches 57,000, all-time High; Nifty Nears 17,000 - News18

The BSE Sensex on Tuesday opened in the green, was trading at 57,000, up 194.75 points, or 0.34 per cent. While the Nifty50 was at 16,959, up 28.59 points, or 0.17 per cent. On NSE, HCL Tech, Bharti Airtel, Dr Reddy’s were the top gainers in the early trade at 0928 hours. While Tata Motors, Mahindra and Mahindra, ONGC, ICICI bank were among the laggards. However on BSE, ESAB Ltd was the top gainer and Force Motor was the worst performer in the early trade. Sectorally, Nifty Bank, Nifty Auto, Nifty PSU Bank opened in the red, on the flip side, Nifty IT emerged as the top gainer. In the IT pack, Cyient, Coforge, Tech Mahindra were the top gainers.While BSE MidCap was up 0.25 per cent, BSE Smallcap was also up 0.50 per cent. The tapering of stimulus announcement made by US Fed Chair Jerome Powell, and his dovish stance, set the course of the market globally on Tuesday, but here in Indian markets, the clarity on GDP numbers is also impacting the markets in India. The GDP number is due to be released today.

“A distinguishing feature of this bull market which started in April 2020 is that it has been remarkably stable without any major correction. So, the newbie retail investors who entered the market since April 2020 (1.42 cr new Demat accounts opened in FY21) have been buying every dip, successfully. Now, with the Fed giving a commentary favourable to bulls, momentum is likely to take the Nifty to 17000. The flip side of this relentless Bull Run is the excessive valuation, which exposes the market to an unexpected sharp correction. This market has proved skeptics wrong, till now. Even while enjoying the party, investors should be prepared for a sharp correction. Partial profit booking is never a bad idea. IT stocks have turned a bit weak, perhaps due to dollar appreciation. But experience tells us that the performance of IT companies depends more on the deal wins than the exchange rate. So dips can be used to buy," Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said.

Asian markets factoring in the clarity they got from Powell’s speech opened in green. Japan’s Topix index fell 0.2 per cent, Australia’s S&P/ASX 200 index rose 0.2 per cent South Korea’s Kospi fell 0.1 per cent. However, MSCI’s benchmark for global equity markets hit a record. The S&P 500 gained 0.43 per cent, to 4,528.76 and was on track to finish the month up more than 3 per cent, and the Nasdaq Composite added 0.9 per cent to 15,265.72 as investors jumped into technology stocks.

Indian rupee opened with marginal gains at 73.24 per dollar on Tuesday against previous close of 73.27.

However, Nifty Futures on the Singapore Stock Exchange was trading at 16,929, down 5.25 points, 0.03 per cent singaling a red opening for the markets in India. However, global markets remained upbeat weighing the dovish stance of Powell. Factoring in this,

“Nifty is now near the 17000 psychological mark. Sharply positive advance decline ratio has improved sentiments, though participants are aware of the high valuation and possibility of a correction that can set in soon. 17,000 is the next logical target for the Nifty while 16731 is the support for the near term," Deepak Jashni, head of retail research, HDFC Securities said.

As the GDP data is coming today there is an expectation that the Indian economy will rebound in a double digit figure. The GDP number will set the course for the market tomorrow.

Read all the Latest News, Breaking News and Coronavirus News here

Adblock test (Why?)

Stock Market Today: Sensex Touches 57,000, all-time High; Nifty Nears 17,000 - News18
Read More

Tata Power, Bharat Forge, Bharti Airtel and other top stocks to watch out for on August 31 - Business Insider India

[unable to retrieve full-text content]

1. Tata Power, Bharat Forge, Bharti Airtel and other top stocks to watch out for on August 31  Business Insider India
2. Bharti Airtel Board Approves Raising Capital Up To Rs 21000 Crore Via Rights Issue | Markets Today  CNBC-TV18
3. Bharti Airtel share price rises as brokerages maintain buy; foresee up to 22% upside  Moneycontrol.com
4. Sunil Mittal says Bharti Airtel will not shy away from raising tariffs  Mint
5. Airtel's Sunil Bharti Mittal Calls For Tariff Hike | Reporter's Diary | CNBC TV18  CNBC-TV18
6. View Full coverage on Google News

Tata Power, Bharat Forge, Bharti Airtel and other top stocks to watch out for on August 31 - Business Insider India
Read More

Prosus Agrees Acquisition of BillDesk by PayU for US$4.7bn - Business Wire

AMSTERDAM--(BUSINESS WIRE)--Prosus N.V. ("Prosus"), the global consumer internet group and one of the largest technology investors in the world, announced today that an agreement has been reached between PayU and the shareholders of the Indian digital payments provider BillDesk to acquire BillDesk for US$4.7 billion.

The proposed acquisition will see PayU, the payments and fintech business of Prosus which operates in more than 20 high-growth markets, become one of the leading online payment providers globally by total payment volume (TPV).

PayU focuses on high-growth markets and operates across three distinct businesses:

1. Payments for domestic and cross border transactions. For the financial year ended March 2021, PayU reported a strong performance, increasing TPV 51% year-on-year to US$55bn across India, Latin America and EMEA;
2. Credit solutions for consumers and small businesses. Licensed in India and distribution agreements in five other markets; and
3. Strategic investments in innovative fintech companies. Including Remitly in the US and the building of a full financial services ecosystem in India.

BillDesk, founded in 2000, is an Indian success story and one of the leading payment businesses in the country.

Together, PayU India and BillDesk will be able to meet the changing payments needs of digital consumers, merchants and Government enterprises in India and offer state-of-the-art technology to even more of the excluded sections of society, while adhering to the regulatory environment in India and delivering robust consumer protection.

The transaction, which is subject to approval from the Competition Commission of India, builds on previous successful acquisitions by PayU in India, including CitrusPay, Paysense and Wibmo.

Bob van Dijk, Group CEO of Prosus, said: “We have a long and deep relationship with India, having supported and partnered with some of its most dynamic entrepreneurs and new tech businesses since 2005. We’ve invested close to US$6 billion in Indian tech to date, and this deal will see that increase to more than US$10 billion.

“BillDesk exemplifies the ambition and expertise of Indian entrepreneurs, who are among the best in the world, with exceptional abilities to build products and services and understand scale and value. This is critical in a country as vast as India.

“Our announcement today reflects Prosus’s desire to build valuable, global consumer internet businesses that provide useful products and services for millions of people in their everyday lives. Along with classifieds, food delivery, and education technology, payments and fintech is a core segment for Prosus, and India remains our number one investment destination.”

Laurent Le Moal, CEO of PayU, said: “We believe this transaction will stimulate both innovation and competition within India’s digital payments industry. This will not only help to strengthen India’s digital economy, but also bring financial services to those who may have historically been excluded. This ambition is fully aligned with the Government of India’s vision of ‘Digital India’ and is a key objective for PayU across all the communities we serve globally.

“This deal is an example of how our purpose and our business objectives work together, accelerating growth and increasing access to financial services.”

M N Srinivasu, Co-founder of BillDesk, said: “BillDesk has been a pioneer in driving digital payments in India for well over a decade. This investment by Prosus validates the significant opportunity in India for digital payments that is being propelled by innovation and the progressive regulatory framework put into place by the Reserve Bank of India, India’s central bank.

“BillDesk has always been committed to making payments faster, easier and more secure. We are excited about what the two great teams at BillDesk and PayU can deliver together as a driving force within the evolving digital payments landscape in India.”

According to the FY21 annual report of the Reserve Bank of India (RBI), the number of transactions for digital retail payments has grown by more than 80% from 24 billion in 2018-19 to 44 billion to 2020-21.

Over the next three years, RBI expects more than 200 million new users to adopt digital payments with the average annual transactions per capita rising tenfold from 22 to 220.

PayU India and BillDesk run complementary businesses within India’s digital payment industry. Together, the two expect to create a financial ecosystem handling four billion transactions annually - four times PayU’s current level in India.

About Prosus

Prosus is a global consumer internet group and one of the largest technology investors in the world. Operating and investing globally in markets with long-term growth potential, Prosus builds leading consumer internet companies that empower people and enrich communities.

The group is focused on building meaningful businesses in the online classifieds, food delivery, payments and fintech, and education technology sectors in markets including India, Russia, and Brazil. Through its ventures team, Prosus invests in areas including health, logistics, blockchain, and social commerce. Prosus actively seeks new opportunities to partner with exceptional entrepreneurs who are using technology to improve people’s everyday lives.

Every day, millions of people use the products and services of companies that Prosus has invested in, acquired or built, including 99minutos, Aruna, Avito, Biome Makers, Brainly, BUX, BYJU'S, Bykea, Codecademy, DappRadar, DeHaat, dott, ElasticRun, eMAG, Eruditus, Flink, GoodHabitz, Honor, iFood, Klar, Kovi, LazyPay, letgo, Meesho, Movile, Oda, OLX, PayU, Quick Ride, Red Dot Payment, Remitly, Republic, Shipper, SimilarWeb, Skillsoft, SoloLearn, Swiggy, Udemy, Urban Company and Wolt.

Hundreds of millions of people have made the platforms of Prosus’s associates a part of their daily lives. For listed companies where we have an interest, please see: Tencent, Mail.ru, Trip.com Group Limited, and DeliveryHero.

Today, Prosus companies and associates help improve the lives of around a fifth of the world's population.

Prosus has a primary listing on Euronext Amsterdam (AEX:PRX) and secondary listings on the Johannesburg Stock Exchange (XJSE:PRX) and a2X Markets (PRX.AJ). Prosus is majority-owned by Naspers. For more information, please visit www.prosus.com.

Adblock test (Why?)

Prosus Agrees Acquisition of BillDesk by PayU for US$4.7bn - Business Wire
Read More