Rapyd acquires PayU for $610m, expanding into LatAm & Africa

By Gloria Methri

Israeli FinTech-as-a-Service platform Rapyd has acquired PayU’s Global Payment Organisation (GPO) in Latin America and Africa for approximately $610 million. The deal, initially signed in August 2023, concluded after receiving approval from seven regulatory authorities worldwide.

PayU GPO is the payments and FinTech business of Prosus, a Dutch consumer internet group and global tech investor based in the Netherlands. The company offers payment solutions to both enterprise and SMB segments and operates in over 30 countries worldwide.

The sale of GPO in Latin America and Africa enables PayU to focus on the rapidly growing Indian payments and credit market, where it serves more than 450,000 merchants and over 2 million credit customers.

In a statement, Prosus said the move supports its ongoing strategy to concentrate on markets with the highest growth potential. PayU will continue to innovate within India’s dynamic FinTech sector, leveraging the country’s rapidly evolving digital payments landscape.

Rapyd eyes market expansion

Rapyd is a digital payment processing and infrastructure company that delivers end-to-end products covering the entire payment spectrum. This acquisition increases Rapyd’s ability to offer card acquiring across six countries in Latin America, including Mexico, Brazil, Argentina, Chile, Colombia and Peru. It also expands Rapyd’s market access into Africa in key countries such as Nigeria and South Africa. As the two companies begin combining their operations, Rapyd will be able to expand its capabilities and personnel in these regions.

To finance the acquisition, Rapyd raised $500 million, primarily through equity, with a minor portion sourced from debt. General Catalyst, Vista Credit Partners, and TAL Ventures led the financing, with several new and previous Rapyd investors also participating.