New Delhi, August 1 (IANS): Global investment group Prosus on Tuesday said that Rapyd, a leading Fintech-as-a-Service provider, is acquiring its digital payments business PayU's Global Payments Organisation (GPO) for $610 million in an all-cash deal.
The transaction, said the company, will enable PayU to focus on the large payments and fintech opportunity in India, where it is the leading payments provider, serving more than 450,000 merchants and over 2 million credit customers.
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.
PayU's GPO business has grown considerably in recent years, with payment volumes growing more than 300 per cent in the past five years alone.
"We are now fully focused on the huge fintech opportunity in India, where PayU is the leading payments service provider and is rapidly expanding its credit offering," said Bob van Dijk, Prosus and Naspers CEO.
"As one of the fastest-growing major economies in the world, we strongly believe in digital India and are excited about the next phase of growth for PayU in India," he added.
The deal follows recent strong performance in Prosus's payments and fintech segment, which produced consolidated revenue growth of 52 per cent to $903 million in FY23.
In FY23, total payment volumes for GPO grew 12 per cent year-on-year to $34 billion. This is around 3x growth in 5 years.
Rapyd is a digital payment processing and infrastructure company that delivers end-to-end products covering the entire payment spectrum from ecommerce payments acceptance to complex financial solutions including payouts, FX, white label wallets, and card issuing.
"PayU's payments business is one of the largest, fastest growing and most profitable businesses in India among non-banking players, delivering 42 per cent year on year growth in the last year alone," said Laurent le Moal, PayU CEO.
The transaction is subject to customary regulatory approvals and closing conditions.
Prosus has invested, acquired or built companies like Airmeet, BYJU'S, DeHaat, LazyPay, Mensa Brands, Meesho, OLX, Pharmeasy, Swiggy, Urban Company and more.