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In a significant move, PayU (owned by Prosus) on Monday called off the $4.7 billion acquisition of Indian digital payments provider BillDesk, saying that "certain conditions precedent were not fulfilled" by the deadline.

On August 31, global consumer Internet group Prosus announced that an agreement has been reached between PayU and the shareholders of BillDesk to acquire the fintech platform for $4.7 billion.

The closing of the transaction was subject to the fulfilment of various conditions precedent, including approval by the Competition Commission of India (CCI).

"PayU secured CCI approval on 5 September 2022. However, certain conditions precedent were not fulfilled by the 30 September 2022 long stop date, and the agreement has terminated automatically in accordance with its terms and, accordingly, the proposed transaction will not be implemented," the company said in a statement.

Prosus has been a long-term investor and operator in India, investing close to $6 billion in technology companies in the country since 2005.

Prosus said it "remains committed to the Indian market and growing its existing businesses within the region".

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

"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 have invested close to $6 billion in Indian tech to date, and this deal will see that increase to more than $10 billion," Bob van Dijk, Group CEO of Prosus, had said in a statement.

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