Netherlands-based investment firm Prosus on Tuesday said its fintech arm PayU will sell its Global Payments Organisation (GPO) business for a total cash consideration of $610 million to fintech firm Rapyd.
“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' Chief Executive Officer, in a media statement.
PayU’s GPO business provides e-commerce payment solutions for global merchants in over 30 countries across Latin America, Central and Eastern Europe and Africa.
India focus
The investment firm said that PayU will now focus on its growing Indian payments and credit business.
“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," CEO Dijk added.
In FY23, PayU India reported $400 million in revenue for the financial year ended in March 2023, a growth of 31 percent. PayU India facilitated more than 1.2 billion transactions with a Gross Transaction Value (GTV) worth $39 billion at a growth rate of 30 percent year-on-year.
As per Prosus' statement, the business contributes around 30 per cent of PayU's overall revenues. In FY23, total payment volumes for GPO grew 12 per cent year-on-year to $34 billion, which is around a 3x growth in 5 years.
The acquiring firm, Rapyd, is a digital payment processing and infrastructure company that offers services such as e-commerce payments acceptance to complex financial solutions including payouts, white-label wallets, and card issuing.
"This transaction will help Rapyd to significantly scale and market its presence in Central and Eastern Europe and Latin America, while
also gaining access to relevant underlying licenses and payment processing infrastructure," the statement said.
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