Prosus To Sell PayU Unit For $610 Million
The transaction will enable PayU to focus on the large payments and fintech opportunity in India.
Netherlands-based investor Prosus NV said on Tuesday that it would sell a part of PayU to Israeli fintech Rapyd for about $610 million.
Rapyd will acquire PayU's global-payments-organisation business in a pure cash deal.
"The transaction will enable PayU to focus on the large payments and fintech opportunity in India, where it is the leading payments provider, serving more than 450,000 merchants and more than 2 million credit customers," Prosus said in a statement.
PayU's GPO's business provides e-commerce payment solutions for merchants in over 30 countries across Latin America, central and eastern Europe and Africa and contributes around 30% of PayU's overall revenues.
In its annual report, Prosus said its payments and fintech segment produced consolidated revenue growth of 52% to $903 million in FY23. However, it said that while both India and global payments operations grew revenue solidly, the core payment service provider business reported a trading loss of $2 million, mainly due to GPO's once-off loss provision.
