The Netherlands-based investment firm Prosus on Monday said its fintech arm PayU is selling a part of its business to Israel’s Rapyd for an all cash deal of $610 million to focus on the Indian market.
As part of the deal, Rapyd, a fintech-as-a-service provider, will acquire PayU’s Global Payments Organisation (GPO).
PayU’s Global Payments Organisation, which forms part of the transaction, operates in more than 30 countries across Asia, Latin America, Europe and Africa, and contributes to about a third of PayU’s overall revenue.
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.
Fintech in India
“The transaction will enable PayU to focus on the large payments and fintech opportunity in India, where it is the leading payments provider, serving more than 4,50,000 merchants and more than 2 million credit customers,” said Prosus in its statement.
Prosus’s payments and fintech segment posted a consolidated revenue growth of 52 per cent to $903 million in FY23, it added.
“PayU’s GPO business has grown considerably in recent years, with payment volumes growing more than 400 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, Chief Executive Officer, Prosus.