Rapyd, a global financial technology company, has taken a massive step to grow its business by acquiring PayU’s Global Payment Organisation (GPO) in Latin America and Africa. The deal, worth approximately $610 million, was first signed in August 2023 and was recently finalized after gaining approval from seven different regulatory bodies worldwide.
With this acquisition, Rapyd strengthens its presence in some of the fastest-growing digital payment markets. PayU’s GPO was previously owned by Prosus, a Dutch internet and technology investment company. PayU’s GPO business offered online payment solutions to businesses of all sizes, operating in over 30 countries globally. The company provided services such as card payments, digital wallets, and bank transfers, making online transactions smoother for businesses and consumers alike.
PayU Shifts Focus to India
As part of this deal, PayU has chosen to focus its efforts on India, one of the world’s largest digital payments and credit markets. PayU already serves more than 450,000 businesses in India and has over 2 million credit customers. By selling its operations in Latin America and Africa, PayU aims to deepen its presence in India’s rapidly growing fintech sector.
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Prosus, the parent company of PayU, stated that this decision aligns with its long-term strategy of prioritizing high-growth markets. By concentrating on India, PayU expects to bring more innovation to digital payments and credit services, helping businesses and individuals with smoother financial transactions. The company sees immense potential in India’s growing digital economy, where mobile payments and online shopping continue to rise at an unprecedented rate.
PayU’s strategic move allows it to allocate more resources to expanding its lending and credit services in India. With a stronghold in the country’s fintech ecosystem, the company aims to provide seamless access to digital credit and financing options to businesses and consumers, further fueling India’s financial inclusion efforts.
Rapyd Expands into Key Markets
Rapyd is known for its global digital payment solutions that help businesses send, receive, and process money seamlessly. With this acquisition, Rapyd will now provide more services in six key Latin American countries: Mexico, Brazil, Argentina, Chile, Colombia, and Peru. Additionally, Rapyd will strengthen its presence in Africa, particularly in Nigeria and South Africa.
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By integrating PayU’s existing operations, Rapyd will increase its ability to process card payments in these regions. This means more businesses in Latin America and Africa will have access to advanced payment solutions, making it easier for people to shop online, send money, and complete digital transactions. The company’s infrastructure will support multiple local payment methods, including bank transfers, e-wallets, and alternative payment solutions tailored to each country’s market needs.
To fund this large-scale acquisition, Rapyd raised $500 million. Most of the money came from equity, with a small portion from debt. Several major investors participated in financing the deal, including General Catalyst, Vista Credit Partners, and TAL Ventures, along with other new and existing investors.
This acquisition marks a significant move for Rapyd as it cements its position in the global fintech industry, offering advanced payment solutions to businesses and individuals across multiple continents. The integration process will enable Rapyd to onboard more merchants, expand financial services, and improve the digital transaction experience for millions of users in Latin America and Africa.
