Rapyd, Israel's fintech-as-a-service startup, is acquiring PayU’s Global Payments Organisation (GPO) for a total cash consideration of $610 million. The transaction will enable PayU to focus on the large payments and fintech opportunity in India, announced the company.
The acquisition of PayU Global Payment Organisation (GPO) does not include PayU’s India, Turkey and Southeast Asia operations.
PayU is a payments and fintech business of Prosus, a Netherlands-based consumer internet group and a technology investor that operates and invests in markets with long-term growth potential.
PayU’s GPO business provides advanced ecommerce payment solutions for global merchants in over 30 countries across Latin America, Central and Eastern Europe and Africa. The business contributes around 30% of PayU's overall revenues. In FY23, total payment volumes for GPO grew 12% year-on-year to US$34bn. This is around 3x growth in 5 years.
PayU will now focus on the "rapidly growing Indian payments and credit business", according to a statement from Prosus, under its subsidiary PayU India, through which it is serving more than 450,000 merchants and more than 2m credit customers.
For Rapyd, the acquisition of PayU GPO expands its global reach, strengthening its position in key vertical markets including eCommerce, logistics and transportation.
PayU CEO Laurent le Moal, said,"PayU's payments business is one of the largest, fastest growing, and most profitable non-banking businesses in India, with 42% year on year growth in the last year alone." Overall, India's digital financial services opportunity remains large and underserved, providing healthy growth for PayU India".
According to the company's consolidated financial statement for 2023, PayU's India business alone generated $399 million in revenue in FY23, growing 31% year on year.
To recall, in October last year, Prosus had terminated a $4.7 billion deal to buy Indian payments firm BillDesk despite receiving approval from the Competition Commission of India (CCI).
Prosus is majority-owned by South African multinational Naspers, and through its subsidiary Prosus, Naspers has claimed to have invested close to $6 billion in Indian technology companies since 2005.
In July 2021, Prosus, along with SoftBank, led the $1.25 billion financing round of Swiggy and holds about ~ 38% stake in the Indian food delivery giant.
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