PayU, the fintech and electronic payments arm of Prosus, revealed its decision to divest its online payment platform known as the Global Payments Organisation (GPO). The recipient of this platform will be Rapyd, a fintech service provider.
The cash agreement is valued at $610 million (approximately €556 million).
This transaction not only paves novel pathways for Rapyd but also grants PayU the ability to focus on its swiftly expanding digital payment and credit operations in India. In this sphere, PayU boasts a widespread network of 450,000 merchants and caters to 2 million credit customers.
This deal comes on the heels of robust performance in Prosus’ Payments and Fintech sector. This segment exhibited a substantial 52 percent consolidated revenue growth, amounting to $903 million in FY23.
PayU’s Global Payments Organisation (GPO) division offers sophisticated e-commerce payment solutions to global merchants in over 30 countries, spanning Latin America, Central and Eastern Europe, and Africa.
GPO contributes approximately 30 percent of PayU’s overall revenues. During FY23, GPO’s total payment volumes experienced a 12 percent year-on-year growth, reaching $34 billion. This reflects an impressive threefold growth within a five-year span.
Rapyd stands as a digital payment processing and infrastructure enterprise, providing comprehensive solutions that span the entire spectrum of payments. This includes embracing e-commerce payment acceptance as well as intricate financial resolutions like payouts, foreign exchange services, white label wallets, and card issuance.
This agreement is set to empower Rapyd by facilitating substantial expansion and heightened visibility in the regions of Central and Eastern Europe, along with Latin America. Moreover, it will provide Rapyd with invaluable access to essential underlying licenses and a robust payment processing infrastructure.
PayU operates as a financial services provider across burgeoning global markets. It prides itself on introducing inventive technology that facilitates online transactions for billions of individuals and millions of merchants. Serving as an online payment solutions provider, PayU employs a repertoire of more than 300 payment methods and operates PCI certified platforms, processing an impressive tally of approximately 10 million payments on a daily basis.
Distinguished as one of the foremost contributors to fintech, PayU’s investments have amassed a remarkable total exceeding $1 billion to date.
Laurent le Moal, the CEO of PayU, expresses, “As we concentrate our investments within the Indian market, a thrilling phase unfolds for Prosus’s Payments & Fintech segment. PayU’s payment enterprise ranks among the largest, fastest-growing, and most lucrative businesses in India, especially among non-banking entities, showcasing an impressive 42 percent year-on-year growth in the past year alone.”
He continues, “Overall, the prospect of India’s digital financial services remains substantial and relatively untapped, offering robust expansion prospects for PayU’s operations in India. Particularly in areas like lending and digital credit products, where PayU India presently serves more than 2 million customers and over 450,000 merchants, we anticipate a strong trajectory of growth in the forthcoming years.”