Rapyd, a global Fintech-as-a-service provider, has made a significant move to boost its expansion in Latin America with the acquisition of PayU GPO for USD $610 million. This deal positions Latin America as a key region for Rapyd, accounting for approximately 25% of its global business.
PayU, a leading provider of payment solutions for businesses and SMEs in emerging markets, is part of a global consumer internet investment group based in the Netherlands. With operations in more than 30 countries worldwide, PayU has established itself as a prominent player in the payment industry.
The acquisition of PayU strengthens Rapyd’s position in the fintech sector and accelerates its global expansion plans, particularly in emerging markets within Latin America. Rapyd, known for its Fintech-as-a-service model, boasts an extensive global payment network and solid experience in local markets.
Following the acquisition, Rapyd and PayU will collectively process transactions in over 100 countries and serve more than 250,000 customers worldwide. Their expanded Global Payment Network will support over 1,200 payment methods through 18 settlement centers. Additionally, they bring licenses or regulatory approvals from 41 countries and an impressive portfolio of Tier 1 clients such as Adidas, Google, Ikea, Meta, Netflix, Rappi, and Uber. Together, the two companies will have a combined global workforce of 1,700 individuals representing over 50 nationalities, operating in 22 offices worldwide.
This acquisition is not only crucial for Rapyd’s global expansion in emerging markets but also establishes Latin America as a central region for its business operations. It is considered one of the most significant deals in the fintech sector this year. According to reports by TechCrunch and CB Insights’ State of Fintech Q2 report, fintech companies in Latin America and the Caribbean raised a substantial $500 million during the second quarter of 2023.
Moreover, the acquisition of PayU by Rapyd contributes to the strengthening of the Fintech infrastructure. As the sector with the highest venture capital investment in 2022, fintech accounted for 29% of total investments, according to the Association for Private Capital Investment in Latin America (LAVCA).
This acquisition represents a significant step for Rapyd as it solidifies its position as a global fintech leader and advances the company’s trajectory towards an initial public offering (IPO).
In conclusion, Rapyd’s acquisition of PayU fortifies the company’s foothold in the fintech industry and paves the way for its expansion into emerging markets in Latin America. With a robust payment network, licenses across numerous countries, and an impressive clientele, Rapyd is poised to become a formidable player in the global fintech space.
