PayU to become part of Israel-based startup Rapyd
Israeli unicorn Rapyd has announced the acquisition of payments company PayU, owned by investment firm Prosus. The deal is valued at USD 610 million. It is worth noting that Canada’s Nuvei was also bidding for the company, but the Israeli fintech company won out.
According to Rapyd, the purchase of PayU will allow it to scale its business by building a global payments network. The deal will enable the company to enter new markets in Europe and Latin America. The acquisition of PayU will expand Rapyd’s presence in 41 countries and increase the number of payment methods available to customers to 1,200. Rapyd director Aric Stilman hopes the deal will open up new opportunities for the fintech unicorn. The company will be able to combine its developments with PayU’s extensive technical expertise to create new products and improve service levels.
Israeli fintech is systematically implementing a strategy of global expansion. According to Rapyd representatives, in 2023, they managed to achieve almost 100% of their business scaling goals. Fintech uses both organic growth tools and the M&A model for its development. One of Rapyd’s most significant deals in recent years was the acquisition of Irish payment processor Valitor in 2021. At the end of 2022, the company bought the Neat platform from Hong Kong. In addition, Israeli fintech is reportedly preparing for an IPO.
Overview of PayU’s activities
Payment company PayU GPO provides transaction services for online shops. Headquartered in Hofddorp, the company was founded in the Netherlands in 2002. Thanks to PayU’s fintech solution, e-commerce merchants can accept and process payments in various ways. It is also possible to use the company’s products for mobile applications.
PayU is the result of the merger of a number of payment systems into a single group. Currently, the fintech structure includes several companies, including:
– Israeli startup Zooz, which has developed its own API for e-commerce;
– Indian payments company Citrus Pay, acquired in 2016 for USD 130 million;
– the company has also invested €110 million in German fintech Kreditech. It offers underwriting services using machine learning technology;
– in 2011, Romanian payment operator GECAD ePayments joined PayU;
– in 2019, PayU acquired US financial security company Wibmo;
– startup PaySense joined the company in 2020 with a transaction value of USD 185 million.
PayU has obtained all the necessary licences for financial activities from the relevant authorities and national banks. The company operates in Europe, Latin America, India and Africa.