Prosus NV, a Dutch global consumer internet group, has agreed to sell part of its financial technology company, PayU, to Israel’s Rapyd for almost R11 billion ($610 million).
- The deal will exclude PayU’s biggest payments market in India, as well as its units in Turkey and Indonesia.
- PayU’s Global Payments Organisation, which operates in over 30 countries across Asia, Latin America, Europe, and Africa, and contributes to about a third of PayU’s overall revenue, will be part of the transaction.
- The sale is part of Prosus’s efforts to unlock value after its early bet on China’s Tencent Holdings.
- Prosus is now fully focused on the fintech opportunity in India, where PayU is the leading payments service provider and is rapidly expanding its credit offering.
- Rapyd, which recently partnered with another South African firm previously owned by Naspers, Multichoice Group, has made several acquisitions, including payments company Valitor in 2021.
- The deal with PayU will help Rapyd scale its business and market presence in regions including Europe and Latin America, while giving it access to relevant underlying licenses and payment-processing infrastructure.