Fintech SaaS Startup Rapyd Acquires PayU for $610 Million

Rapyd, Israel's fintech-as-a-service startup, has paid $610 million for global investor and internet giant Prosus' payment group PayU. The Dutch investment firm is selling its stake in PayU's Global Payment Organisation (GPO), which covers nearly 30 countries, but will retain operations in India, Turkey, and Southeast Asia.

PayU will now focus on the "rapidly growing Indian payments and credit business," according to a statement from Prosus. Under its subsidiary PayU India, it currently serves over 450,000 merchants and over 2 million credit customers in the country.

"PayU's payments business is one of the largest, fastest growing, and most profitable non-banking businesses in India, with 42% year on year growth in the last year alone." Overall, India's digital financial services opportunity remains large and underserved, providing healthy growth for PayU India', said PayU CEO Laurent le Moal.

Prosus' payments and fintech segment grew rapidly in the previous fiscal year, with consolidated revenue increasing by 52% to $903 million in FY23. It is now betting heavily on India's digital payments space, which has seen rapid growth in recent years.

According to the company's consolidated financial statement for 2023, PayU's India business alone generated $399 million in revenue in FY23, growing 31% year on year.

“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. As one of the fastest-growing major economies in the world, we strongly believe in digital India and are excited about the next phase of growth for PayU in India,” said Bob van Dijk, Prosus and Naspers chief executive.