With this transaction, PayU expands into the Southeast Asia region and brings the total amount deployed in fintech investments and M&A to north of $700 million over the last three years.
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.
The move demonstrates PayU’s commitment to becoming the leading payments solution provider in high-growth markets and one of the largest fintech investors in the world.
Formed in 2011 by a group of payment experts from various Fortune 500 companies in the industry, RDP has grown into Singapore’s largest home-grown and trusted online payment solutions fintech company, delivering innovative, secure and customised payment solutions for all enterprise sizes across Asia and beyond.
With an ever-expanding presence across Southeast Asia, including offices in Indonesia and Thailand, RDP has been focused on booming verticals such as online retail, hospitality, charity, food delivery and more.
According to one Google-Temasek study, Southeast Asia is one of the fastest growing digital payments markets in the world, and is expected to triple in size to US$240 billion in total payments volume by 2025.
The region is already home to 350 million internet users across its six largest countries, exceeding that of the population of the United States, presenting an immense business potential for global merchants.
With this deal, PayU successfully creates a winning proposition for global merchants by integrating RDP platforms into the PayU Hub. PayU can now build a best-in-class cross-border product by offering more local alternate payment methods and connectivity.
“This investment is PayU’s first step towards expansion in the SEA region. We will now provide our existing global merchants access to Southeast Asia with a single API integration, thus strengthening our global PayU Hub platform,” said Laurent le Moal, CEO of PayU.
PayU will collaborate with the promising founders who are driven by an entrepreneurial passion, he added.
“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,” Moal said. – VCNewsAsia.com