Mashreq sells stake in $385m NEOPAY to Arcapita and Dgpays

By Gloria Methri

Arcapita Group Holdings Limited, a global alternative investment firm, and Dgpays, a financial infrastructure technology provider, are set to acquire a majority stake in NEOPAY, while Mashreq retains a significant minority interest.

The transaction implies an approximate enterprise value for NEOPAY of $385 million, and the closing is subject to necessary regulatory approvals.

The acquisition bolsters NEOPAY’s plans to expand its presence in the digital payments sector in the Middle East. The consortium’s strategic support positions NEOPAY to further accelerate its growth trajectory and offer new services, leveraging Dgpays’ technology.

NEOPAY is the UAE’s payment solutions provider, with a strong foothold among merchants and e-commerce players. Founded as a strategic division within Mashreq, NEOPAY experienced significant growth in recent years, serving a diverse client base across critical sectors such as retail, hospitality, government, and e-commerce.

UAE’s card transaction value is expected to grow at double-digit rates over the next five years, presenting substantial opportunities for the company to capture further market share.

NEOPAY’s expansion is driven by the UAE’s dynamic economic landscape, which is characterised by a young, digitally literate population, robust GDP growth, and the government’s ongoing initiatives to promote digital transformation and a cashless economy.

Serkan Omerbeyoglu, CEO of Dgpays, said, “NEOPAY has demonstrated exceptional growth and innovation in the UAE’s digital payments landscape, and we see tremendous potential in expanding this success across the broader Middle East region. At Dgpays, our mission has always been to drive digital transformation in financial services through cutting-edge technology and strategic partnerships. By integrating our FinTech solutions with NEOPAY’s robust platform, we aim to unlock new opportunities for growth and innovation and present these innovative solutions to the enterprise and SME market of the UAE and broader GCC market.”

Atif A. Abdulmalik, CEO of Arcapita, said, “NEOPAY is fully aligned with Arcapita’s investment strategy, which focuses on acquiring companies that are not only market leaders but also have strong growth potential driven by favourable macroeconomic trends. NEOPAY is well-positioned to benefit from the UAE’s ongoing shift towards digital payments, supported by rising GDP, a tech-savvy young population, and government-led initiatives for digital transformation. Arcapita will support the next phase of NEOPAY’s growth into value-added services and new markets.”

Ahmed Abdelaal, Mashreq’s Group CEO, said, “This transaction is a key milestone in NEOPAY’s journey, allowing it to continue its strong growth trajectory as a regional leader in digital payments. We are confident that Arcapita and Dgpays have the right expertise and vision to help NEOPAY achieve its ambitious expansion plans across the Middle East. While Mashreq retains a significant stake in NEOPAY, we are excited to see the company reach new heights as it scales its operations and reinforces its market leadership.”

Vibhor Mundhada, CEO of NEOPAY, also said, “We are thrilled to embark on the next chapter of NEOPAY’s growth with the support of Arcapita and Dgpays. NEOPAY has established itself as a leader in the digital payments sector by consistently innovating and delivering value to our clients. With the technological and financial backing of our new shareholders, alongside Mashreq’s continued support, we are well-positioned to accelerate our growth in the UAE and expand our footprint across the Middle East. We remain committed to advancing e-commerce payments and driving the broader adoption of digital payments across the region.”