Naspers’ global fintech firm PayU enters Southeast Asia with Red Dot Payment acquisition
As part of the deal, PayU has acquired a majority stake in RDP in a transaction valuing the company at $65 million.Sujata Sangwan
Naspers’ global payments and fintech firm PayU today announced the acquisition of a majority stake in Red Dot Payment (RDP), a Southeast Asia-focused online payment solutions provider, in a transaction valuing the latter at $65 million.
As part of the deal, RDP's founder will continue to retain a stake in the company, while the majority of other shareholders will exit.
With this acquisition, PayU expands into the Southeast Asia region and brings the total amount deployed in fintech investments and M&A in the north of $700 million over the last three years.
Speaking on the announcement, Laurent le Moal, CEO of PayU said,
“We will now provide our existing global merchants access to Southeast Asia with a single API integration, thus strengthening our global PayU Hub platform.”
Randy Tan, CEO and Founder of Red Dot Payment, added,
"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."
Founded in 2011, RDP is payment solutions provider in Asia Pacific for verticals such as online retail, hospitality, charity, food delivery and more. The Singapore-based company has a presence across Southeast Asia, including offices in Indonesia, Thailand and Australia.
It is serving more than 500 merchants across 22 countries. Its clients include Visa, Mastercard, UnionPay, WeChat Pay, Alipay, Paylah and Virtual Accounts, among others.
PayU supports over 300,000+ merchants and millions of consumers making payments online with over 250 payment methods and 1,800+ payment specialists. With operations in Asia, Central and Eastern Europe, Latin America, the Middle East ,and Africa, PayU has a potential consumer base of nearly 2.3 billion people.
Meanwhile, PayU India’s Managing Director, Jitendra Gupta, has stepped down from the company to start up again in India’s fintech landscape.
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 $240 billion in total payments volume by 2025.
(Edited by Evelyn Ratnakumar)