Fintech Firms Participate In A Bidding Way For PayU

The Prosus investment company has said that it will be selling PayU. The tender for the purchase has been given to Bank of America. Fintech companies are now competing for the tender process amid plans to close the acquisition deal.

Fintechs participate in a bidding war for Prosus

Reports reveal that at least two companies with Israeli links are competing for the purchase of PayU. One of these companies is Rapyd, which is the largest fintech unicorn in Israel. The other company is Nuvei, with is one of the largest payment companies in Canada. Nuvei had previously acquired SafeCharge.

PayU is a platform with ties to the Israeli market. In 2018, the company closed the acquisition deal for an Israeli company known as Zooz. The Zooz acquisition deal was closed for around $80 million. PayU also operates a development center in Israel that has thousands of employees.

Besides Rapyd and Nuvei, Worldpay is another company that has shown interest in the acquisition. These companies are expected to participate in the final bidding stage for this tender. The exact value of the sale is yet to be determined, but it is estimated to be worth more than half a billion dollars.

Rapyd is one of the most active fintechs when it comes to acquisitions. The company has made several acquisition deals, including one for Valitor, a payments company based in Iceland. The acquisition was closed in a deal valued at $100 million. Rapyd also closed the acquisition of the Neat fintech company.

Rapyd is a company that was founded in 2015 by Arik Shtilman, Arkady Karpman, and Omer Priel. At the time of launch, the company was known as CashDash. The company is behind a global payment platform targeting consumers and businesses. It also supports bank transfers, digital wallets, cash payments, and other type of offerings.

Rapyd is also behind the largest online payment network globally, supporting 65 different currencies, with a presence in over 170 countries. Prosus has yet to issue any statement on the ongoing tender process and the companies that are competing for the acquisition of PayU.

Prosus wants to divest away from PayU

Prosus NV revealed that it was exploring the possible sale of PayU last month. The company also revealed that it was looking at potential divestments from the PayU financial technology firm that targets emerging markets.

The investment firm is working with the Bank of America as it monitors interest in the operations of PayU outside India. It is believed that a possible acquisition of PayU will generate $800 million, which is a large sum for the firm.

PayU has a vast global presence, with operations across 50 countries, such as Africa, Europe, and Latin America. Prosus might also consider selling the business divisions separately as it retains valuable Indian operations. The discussions about the deal are still ongoing, and the fintech that wins the bidding war will have a massive presence across the digital payments industry.