PayU acquires majority stake in Red Dot Payment
Naspers’ global fintech firm, PayU, has expanded into Southeast Asia by acquiring a majority stake in Singapore-based, Red Dot Payment (RDP), reports Jane Connolly.
Under the terms of the deal, which values the online payment solutions provider at $65 million, the majority of other shareholders will exit, although RDP founder, Randy Tan, will retain a stake.
RDP’s growing presence in Southeast Asia includes offices in Indonesia and Thailand. Since it was founded in 2011, the company has become Singapore’s largest home-grown payment solutions fintech by focusing on high-growth verticals such as online retail, food delivery, hospitality and charities.
“This investment is PayU’s first step towards expansion in the SEA region,” says PayU CEO Laurent le Moal. “We will now provide our existing global merchants access to Southeast Asia with a single API integration, thus strengthening our global PayU Hub platform. Owing to the immense potential that the SEA market presents, PayU sees a vast opportunity in this region to grow and innovate further. We will continue to look for prospects to reinforce our footprints in this market.”
Having deployed over $700 million in fintech investments and M&A over the last three years, this acquisition takes PayU closer to its goal of becoming one of the world’s largest fintech investors.
PayU aims to become the leading payments solution provider in high-growth markets. Southeast Asia’s digital payments market is expected to triple in size to $240 billion in total payments volume by 2025.
