This acquisition will allow PayU to own the entire payment process of Wibmo
Bengaluru and Cupertino-based Wibmo, which is in the line of business of processing online payments, could soon be acquired by digital payments company PayU, and talks are in the final stages of settlement, sources have been quoted as saying.
The deal is estimated at $50-60 million. If the talks are successful, it will be another feather in the cap for PayU, since it has planned to invest more than $1 billion to get inroads into the massive Indian market, organically.
Wibmo specializes in multiple payment service offerings that includes 3D secure, a technology that ensures safety of digital transactions to mobile payments and merchant payments. Wibmo was formerly known as Enstage and was backed by early-stage venture fund Accel Partners.
Once this acquisition goes through, PayU, which is owned by Naspers, will get control of the entire payment process, the sources said. In an observation, one source was quoted as saying that Naspers plans for huge investments in the FinTech space. This new acquisition will complete the entire suite of payments offerings for PayU. This will add big value to their existing business of providing payment acceptance solutions for online merchants.
Earlier, it was reported that PayU was in an advanced stage of talks for investing a 25 percent stake in Capital Float, which was cited to be amounting to $150 million.PayU spokespersons have, however, maintained that according to the company’s policy, they will neither acknowledge nor deny its involvement in any merger, acquisition or divestiture activity nor “comment on market rumours.” There has been no confirmation of this deal by Govind Setlur, founder & CEO of Wibmo, as well.