PayU, Fintech Firm Purchases maximum Stake of Red Dot Payment

PayU, the fintech company owned by Nasper, is expanding its business in Southeast Asia through a deal. The firm announced about a new deal of purchasing a majority stake in Red Dot Payment firm.

Red Dot Payment is a Singapore based firm that offers online payment solutions across Southeast Asia. The company was founded in 2011 by payment experts. The Red Dot Payment services include e-commerce storefronts, payment gateway, and online invoicing throughout Southeast Asia. The company offers integrated online payment solutions to customers in Asia. The company has offices in Thailand and Indonesia.

Naspers is widely known for its payments and fintech services in markets of India, Eastern Europe, Africa, and Latin America. Now the firm will establish its presence in Southeast Asia through PayU. PayU has taken a maximum stake in the Red Dot Payment firm. The deal with the online payment solution provider is valued at $65 million.  Red Dot Payment’s founder, Randy Tan, will hold shares of the online payment company and other shareholders will quit.

The total fund raised by Red Dot Payment firm from investors is not disclosed, but through Series B in 2017, it raised around $5.2 million. The company is supported by GMO of Japan, co-founder of Skype, Toivo Annus, Wavemaker and MDI Ventures.

This deal will allow PayU to expand its business across Southeast Asia and also enables the firm to bring the total amount invested in M&A and fintech investment to over $700 million from 2016.

PayU said in a statement regarding to its investment in the Red Dot Payment, “to becoming the leading payments solution provider in high-growth markets” and the largest fintech investor throughout the world.

PayU, Nasper-investor and South Africa’s headquartered, Internet group will merge platforms of RPD into the PayU Hub.

As per Google-Temasek report, Southeast Asia will notice around $240 billion by 2025 in total payments size, and around 350 million internet users in six largest nations.

PayU CEO, Laurent Le Moal said, the investment of PayU in Red Dot Payment is the foremost step for growing its business in Southeast Asia.

Laurent le Moal mentioned, “We will now provide our existing global merchants access to Southeast Asia with single API integration, thus strengthening our global PayU Hub platform. Owing to the immense potential that the SEA market presents, PayU sees a vast opportunity in this region to grow and innovate further.”

Red Dot Payment CEO, Randy Tan shared his thoughts on the deal,

“We are pleased that Red Dot Payment will be part of the Naspers’ fintech portfolio as we look forward to the continued extension of our business and market position in Southeast Asia to be the fintech payment solutions champion in this region.” 

Red Dot Payment has rejected three proposals of acquisition earlier. PayU offers services across the world and includes more than 300,000 merchants also adds Google and Facebook to its list, he stated.

PayU is the number one business provider in India, and the firm is rapidly expanding in Europe and Latin America, biggest markets in Africa but no presence in Southeast Asia’s region, le Moal mentioned.

In 2018, Red Dot Payment (RDP) established its presence in the African market by sealing a memorandum of understanding (MoU) with Finserve Africa. De Mol mentioned that PayU also aims to offer services in Japan and Korea.