PayU, the global fintech player is expanding its operations in South-East Asia and acquires the majority stake in   Red Dot Payment in Singapore

PayU, the global fintech player is expanding its operations in South-East Asia and acquires the majority stake in Red Dot Payment in Singapore

PayU, the payment and fintech division of Naspers, today announced the acquisition of a majority stake in Red Dot Payment (RDP), a provider of online payment solutions for the South-East Asia market.

With this transaction, PayU expands to the South-East Asia region and brings the total amount invested over the past three years in acquisitions and mergers to $ 700 million.

The movement demonstrates PayU's commitment to becoming the leader of online payments in emerging markets and one of the world's largest fintech investors.

Established in 2011 by a group of payment experts from various industry companies of top Fortune 500, RDP has become the largest and most trusted fintech online payment solution in Singapore, providing innovative, secure, customized for all Asian companies and everywhere. With a growing presence in South-East Asia, including offices in Indonesia and Thailand, RDP has focused on expanding verticals such as online retail, hospitality, charity, food delivery and much more.

According to a Google-Temasek study, South-East Asia is one of the world's fastest growing digital payment markets and expects to triple up to a total volume of US $ 240 billion by 2025. The region already hosts 350 million internet users in the six largest countries, surpassing the number of US population and presenting tremendous business potential to global retailers. With this acquisition, PayU successfully creates a winning proposal for global traders by integrating RDP platforms into the PayU HUB.

PayU can now build one of the best products for cross-border expansion, offering more alternative payment methods and greater local connectivity.

Laurent le Moal, CEO al PayU, state: "This investment is the first step in PayU's expansion to the South-East Asia region. We will now offer our existing global marketers access to South-East Asia with a single API integration, thus consolidating the global PayU HUB platform. Due to the huge potential of the South-East Asian market, PayU sees a great opportunity for development and innovation in this region. We will continue to look for opportunities to strengthen our position on this market. "

"As part of our business strategy, PayU will work with the founders of the company, whose entrepreneurial passion is valuable. We are delighted to have Randy and his team together with us on PayU, as we continue to pursue our vision of creating a world without financial borders, " he added.

Randy Tan, CEO and founder of Red Dot Payment, adds: "We are proud of how far we have come and that PayU, a global leader and principal investor in the fintech market, recognizes the strength, depth and breadth of the company we have built with unswerving dedication in the last eight years. It has never been easier for global traders to enter South-East Asia as they now benefit from strong local RDP connectivity combined with Global PayU expertise and experience. We are thrilled that the RDP will be part of Naspers' fintech portfolio and we are looking forward to continuing to expand our business position in the South Asian market to be the fintech number one payment solution in this region. "

Under the terms of the deal, PayU acquired a majority stake in the RDP in a company valuation transaction at $ 65 million. The founder will continue to keep a stake in the company and the other major shareholders will go out. Evolve Capital Asia acted as an exclusive financial advisor to the founder and share sellers.