PayU an online payment specialist has reached an agreement with Rapyd a leading Fintech-as-a-Service provider to acquire PayU’s Global Payment Organisation (GPO) for $610 million (R11 Billion), according to Prosus announcement on Tuesday.
The transaction exclude PayU’s Indian, Turkish and Southeast Asian businesses. This will enable PayU to focus on India’s fintech opportunity, serving more than 450,000 merchants and more than 2 million credit customers and focus on the opportunities available in the most populous country in the world (it recently overtook China).
“PayU’s GPO business has grown considerably in recent years, with payment volumes growing more than 300% in the past five years alone. The business occupies a strong position in the global fintech space as a result of the investments made in building an exceptional local payments business, with global scale,” said Bob van Dijk, Prosus and Naspers chief executive officer.
In FY23, PayU India reported growth of 31%. As per Prosus’ statement, the business contributes around 30% of PayU’s overall revenues.
“As we focus our investment on the Indian market, this is an exciting time for Prosus’s Payments & Fintech segment. PayU’s payments business is one of the largest, fastest growing and most profitable businesses in India among non-banking players, delivering 42% year on year growth in the last year alone. Overall, India’s digital financial services opportunity continues to be large and under- penetrated, offering healthy growth for the PayU India business,” said Laurent le Moal, CEO, PayU.