Prosus Sells PayU’s Global Payments Org to Rapyd, Expands Focus on Thriving Indian Market
- ByStartupStory | August 1, 2023
Internet giant Prosus has finalized a $610 million cash deal to sell PayU’s Global Payments Organization (GPO) business to Israeli fintech-as-a-service company Rapyd. The transaction allows Prosus’s fintech arm to concentrate on growth opportunities within the Indian market. Notably, the deal excludes PayU’s primary payments market in India, as well as its units in Turkey and Southeast Asia.
“PayU’s GPO business has grown considerably in recent years, with payment volumes growing more than 300% in the past five years alone,” said Bob van Dijk, CEO of Prosus and Naspers. “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.”
Prosus CEO Bob van Dijk reaffirmed the firm’s emphasis on the Indian payments market, where its subsidiary PayU India holds a leading position, serving over 450,000 merchants and 2 million credit customers. In FY23, the payments and fintech segment witnessed impressive growth, reaching $1.1 billion, primarily driven by robust performance in the core payment service provider (PSP) business and India’s credit business, which saw a 47% increase year-on-year.
Prosus plans to capitalize on the flourishing fintech opportunities in India, one of the fastest-growing major economies in the world. With a strong belief in India’s digital future, the company is eager to unlock PayU’s potential in the country.
While Prosus has encountered challenges, such as shutting down Lazypay Card due to regulatory changes in India, PayU CEO Laurent le Moal remains optimistic about the growth potential of its lending and digital credit products. The prospects for India’s digital financial services industry continue to be promising, offering ample room for PayU India’s expansion and healthy growth.
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