PayU To Sell Its Global Payment Organisation To Rapyd For $610 MillionAs per the company, the transaction will enable PayU to focus on the India's fintech opportunity, serving more than 450,000 merchants and more than 2 million credit customers

Prosus today announces PayU has reached an agreement with Rapyd, a leading Fintech-as-a-Service provider, that Rapyd will acquire PayU's Global Payments Organisation (GPO) for a total cash consideration of $610 million. As per the company, the transaction will enable PayU to focus on India's fintech opportunity, serving more than 450,000 merchants and more than 2 million credit customers.

"PayU's GPO business has grown considerably in recent years, with payment volumes growing more than 300% in the past five years alone. The business occupies a strong position in the global fintech space as a result of the investments made in building an exceptional local payments business, with global scale," said Bob van Dijk, Prosus and Naspers chief executive officer.

PayU's GPO business claims to provide e-commerce payment solutions for global merchants in over 30 countries across Latin America, Central and Eastern Europe and Africa.

In FY23, PayU India reported $400 million in revenue for the financial year ended in March 2023, a growth of 31%. As per Prosus' statement, the business contributes around 30% of PayU's overall revenues. In FY23, total payment volumes for GPO grew 12% year-on-year to $34 billion which is around 3 times growth in 5 years.

"As we focus our investment on the Indian market, this is an exciting time for Prosus's Payments & Fintech segment. PayU's payments business is one of the largest, fastest growing and most profitable businesses in India among non-banking players, delivering 42% year on year growth in the last year alone. Overall, India's digital financial services opportunity continues to be large and under- penetrated, offering healthy growth for the PayU India business," said Laurent le Moal, CEO, PayU.