Prosus will keep its India operation and sell a portion of PayU to Rapyd for $610 million

 Prosus will keep its India operation and sell a portion of PayU to Rapyd for $610 million

PayU, funded by Prosus, will concentrate on big payments and fintech in India.

Prosus-backed On Tuesday, PayU announced that it was selling a portion of its financial technology company to Rapyd in Israel for $610 million. The agreement would enable Rapyd, a company that offers fintech as a service, to purchase PayU's Global Payments Organisation (GPO).

The transaction will exclude PayU's operations in Turkey and Indonesia as well as India, which is the company's largest payments market. According to Prosus, the deal is subject to regulatory clearances and closing requirements.

About 30% of PayU's total sales come from its GPO division. In FY23, GPO's overall payment volumes increased in five years. It increased 12% year over year to $34 billion.

One of the biggest, fastest-growing, and most profitable non-banking businesses in India is PayU's payments division, which had 42% YoY growth in the most recent year alone.

 Overall, the Indian market for digital financial services is still vast and underserved, providing room for healthy expansion for PayU's operations there, according to Laurent le Moal, CEO of PayU.

In addition to getting access to the necessary underlying licencing and payment processing infrastructure, the PayU transaction will allow Rapyd to expand its footprint in Central and Eastern Europe and Latin America. It is a provider of infrastructure and services for digital payments, including e-commerce payment acceptance, payouts, foreign exchange, white label wallets, and card issuance.

PayU declared that it will concentrate on India's big payments and fintech. Over 2 million credit users and over 450,000 retailers have received services from the organisation.

"PayU's GPO business has expanded significantly over the past several years, with payment volumes increasing by more than 300% only in the last five years. Due to the efforts made in creating an amazing local payments business with global scale, the company holds a strong position in the fintech market, according to Bob van Dijk, CEO of Prosus and Naspers.

Every day, PayU, a supplier of payment services, handles 10 million payments. Additionally, the firm claimed that it focuses on solutions for consumers and small businesses that expand access to credit and banking services in places that are underserved by conventional financial services providers.

In FY23, Prosus' payments and fintech division saw consolidated sales increase by 52% to $903 million.