PayU strikes $65m deal for Singapore payments provider
FYI, this story is more than a year old
PayU, a fintech business belonging to internet multinational firm Naspers, has acquired a majority stake in Southeast Asia-focused online payment solutions provider Red Dot Payment.
The US$65 million acquisition will help PayU to progress its expansion into Southeast Asia, and to boost its fintech investment to more than $700 million over the last three years.
Red Dot Payment (RDP) was formed in 2011. Since then, it has grown into a trusted online payment solutions fintech company headquartered in Singapore, with presence extending into Southeast Asia, and with offices in Indonesia and Thailand.
This investment is PayU's first step towards expansion in the SEA region,” comments PayU CEO Laurent le Moal.
“We will now provide our existing global merchants access to Southeast Asia with a single API integration, thus strengthening our global PayU Hub platform. Owing to the immense potential that the Southeast Asia 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."
PayU cites a Google-Temasek study that points to Southeast Asia’s growth as one of the fastest growing digital payments markets in the world.
That market is expected to achieve US$240 billion in total payments volume by 2025. This is supported by more than 350 million internet users across Southeast Asia’s six largest countries.
"As part of our business strategy, PayU will collaborate with the promising founders who are driven by an entrepreneurial passion. We're excited to welcome Randy and the team to PayU as we continue to pursue our vision of creating a world without financial borders," adds le Moal.
PayU says the deal will allow the company to integrate RDP products into the PayU hub.
"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,” says Red Dot Payment CEO and founder Randy Tan.
“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 continued extension of our business and market position in Southeast Asia to be the fintech payment solutions champion in this region."
The founder will continue to retain a stake in RDP, while most other shareholders will exit. Evolve Capital Asia acted as the exclusive financial adviser to the founder and selling shareholders.