Netherlands-based investment firm Prosus announced that its fintech arm, PayU, will sell a portion of its business to Israel’s Rapyd in an all-cash deal worth $610 million. The move is aimed at shifting PayU’s focus to the Indian market.
Rapyd Acquires PayU Global Payments Organisation (GPO)
As part of the deal, Rapyd, a fintech-as-a-service provider, will acquire PayU’s Global Payments Organisation. The GPO currently operates in more than 30 countries across Asia, Latin America, Europe, and Africa, contributing to about one-third of PayU’s overall revenue.
Growth and Contributions of PayU’s Global Payments Organisation
The Global Payments Organisation is a significant contributor to PayU’s financial performance, accounting for around 30% of its overall revenues. In the fiscal year 2023, total payment volumes for GPO witnessed a remarkable 12% year-on-year growth, reaching $34 billion.
PayU Focus on the Indian Payments and Fintech Opportunity
The divestment will enable PayU to concentrate on the vast payments and fintech opportunity in India, where it currently holds a leading position as a payments provider. With a strong presence, PayU serves over 450,000 merchants and more than 2 million credit customers in the Indian market.
Consolidated Revenue Growth and Prosus’ Future Plans
Prosus reported a 52% consolidated revenue growth of $903 million in FY23 for its payments and fintech segment. The firm’s CEO, Bob van Dijk, emphasized their commitment to focus on the thriving fintech landscape in India. PayU, a part of Prosus, continues to expand its credit offerings and solidify its position as a leading payments service provider in India.
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