Fintech and e-payment firm PayU has announced that it has acquired a majority stake in Singapore e-payment firm Red Dot.
With this transaction, PayU expands into the Southeast Asia region and brings the total amount deployed in Fintech investments and M&A to more than $700 million over the last three years.
With this deal, PayU will create a proposition for global merchants by integrating RDP platforms into the PayU Hub. PayU can now build a cross-border product by offering more local alternative payment methods and connectivity.
“This investment is PayU’s first step towards expansion in the SEA region. We will now provide our existing global merchant’s access to Southeast Asia with single API integration, thus strengthening our global PayU Hub platform. Owing to the immense potential that the SEA market presents, PayU sees a vast opportunity in this region to grow and innovate further. We will continue to look for prospects to reinforce our footprints in this market,” said Laurent Le Moal, CEO of PayU.
Randy Tan, CEO, and Founder of Red Dot Payment said, “We are proud of how far we have come and that PayU, a leading global Fintech operator and investor recognises the strength, depth, and breadth of the company that we have built with unwavering dedication over the past eight years. It has never been easy for global merchants to enter Southeast Asia as they benefit from RDP’s strong local connectivity combined with PayU’s global footprints and experience. We are pleased that RDP will be part of the Naspers’ Fintech portfolio as we look forward to the continued extension of our business and market position in Southeast Asia to be the Fintech payment solutions champion in this region.”
Under the terms of the agreement, PayU has acquired a majority stake in RDP in a transaction valuing the company at US$65 million. The founder will continue to retain a stake in the company, while the majority of other shareholders will exit.
(With inputs from Online Business News Website)
