Happy Monday folks. Vedica here with todays update. I had a bit of a hairy weekend, with some shooting right outside the apartment on Saturday morning. In news today UPI crossed 2B transaction in October, and it looks like Byju's acquisition of Doubnut has fallen through.
➡️ UPI has registered 2.07 billion transactions worth ~$50B crore in October, according to NPCI data. This is 15% and 17.3% month-on-month surge in volume and value, respectively. It took UPI three years to reach one billion transaction mark and only one year to cross 2 billion.
➡️ Clearly Covid has been a big boost for online payments in India and UPI seems to have benefitted from the festival season spending.
➡️ GooglePay, PhonePe and Paytm continue to dominate the UPI ecosystem. Google Pay was downloaded more than 12 million times in September, with 80%+ installations coming from India. PhonePe, Paytm and SBI YONO’s downloads in the month were recorded at 6.9 million, 3.9 million and 3.1 million respectively.
➡️ Even as UPI volume continues to grow the system does have some issues that need resolving. For one, UPI is prone to frequent failures and outages. The NPCi is reportedly working on an online dispute resolution system to address these issues and the RBI has asked payments operators to get involved in this as well.
➡️ And in keeping with the essence of UPI as an interoperable platform, the RBI has also asked all payments operators to stop issuing new proprietary QR codes and switch to at least one interoperable QR code by March 31, 2022. I think this is a good move to push online payments.
2. https://bit.ly/2TJEthp: Doubtnut’s acquisition talks with Byju’s fall through over valuation
➡️ Byju's insane growth and acquisition spree finally seems to have hit a bit of a roadblock. It has been in acquisition talks with edtech platform Doubtnut since June but these have apparently fallen through over valuation, according to Entrackr.
➡️ Apparently Byju’s had agreed to acquire Doubtnut in the range of $130 million, but it reduced the valuation by $40 million to $80-90 million in the final offer after completing its due diligence.
➡️ Doubtnut rejected the offer as it believes that raising capital and scaling up won’t be challenging, especially at a time when the adoption of edtech platforms are an all-time high.
➡️ Doubtnut, which provides instant solutions and clears doubt through pictures and videos, for its core K-12 and JEE audience, has raised ~$19M from the likes of Tencent Holdings, Sequoia, Omidyar Network and Waterbridge Ventures. In January this year, the firm had raised a $15 million Series A round.
➡️ With the Byju's deal now off the table the company seems to be exploring a Series B round. Clearly the ed-tech boom in India doesn't show any signs of slowing down.
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