UK fintech Rapyd snaps up PayU GPO in $610m deal to boost global expansion
Rapyd, the London-based fintech-as-a-service provider, has acquired the Global Payments Organisation (GPO) business of PayU, the e-payments and fintech firm owned by investment group Prosus, for $610 million.
Rapyd buys PayU GPO in $610m deal
PayU’s GPO business, which operates across 30 countries in Latin America (LatAm), Central and Eastern Europe (CEE), and Africa, offers merchant-focused e-commerce payment solutions and currently has a total payment volume of $34 billion.
The deal does not include PayU’s India, Turkey, and Southeast Asia operations. Prosus says selling the GPO business will enable PayU to focus on “the large payments and fintech opportunity” presented by the Indian market. India is currently the company’s largest payments market, with PayU serving as a payments provider to around 450,000 merchants and 2 million credit customers.
The GPO business reportedly accounts for around 30% of PayU’s total revenues, and now Rapyd plans to use its latest acquisition to “significantly scale and market its presence in CEE and LatAm” while also “gaining access to relevant underlying licenses and payment processing infrastructure”.
Rapyd CEO and co-founder Arik Shtilman says: “The synergies with PayU GPO include a richer technology stack, expanded geographic licensing, and broader market reach for our combined merchant portfolios.”
The company adds that the deal continues its “trajectory towards an IPO”.
Bob van Dijk, CEO of Prosus and tech holding company Naspers, confirms that PayU is “now fully focused on the huge fintech opportunity in India” where it is specifically seeking to expand its credit offering.
“Innovation and progressive regulation are driving rapid change within the digital payments industry in India, and we see many new opportunities to further expand our business there,” he says.
Adding to this, the CEO of PayU, Laurent le Moal, claims that the company’s payments business is “one of the largest, fastest growing, and most profitable businesses in India among non-banking players”, having delivered 42% year-on-year growth throughout the last year.
With the extent of the digital financial services opportunity in India, le Moal emphasises how the opportunity could present “healthy growth” for PayU, adding that “we see strong growth potential for the future”.
The deal remains subject to various regulatory approvals and closing conditions.
