Digital Payment provider PayU, which
is owned by South Africa’s Naspers Group will buy rival Citrus Pay for $130
Million, the fifth largest deal ever in the Indian Start-up business and an
indicator of the booming financial technology sector.
After the acquisition, PayU India will
have more than 30 Million customers. The company forecast it will process an
estimated 150 Million transactions worth $4.2 Billion in 2016. The deal is
expected to give an attractive exit to Citrus Pay investors, Ascent Capital and
Beenos and Sequoia Capital. It also represents the latest expansion push by
Naspers, which owns the Ibibo Group in India.
Naspers is now involved in two of
the five biggest deals in Indian start-ups. It also bought online bus ticketing
platform RedBus in 2013 for an estimated $135 Million and owns a large minority
stake in Flipkart. Rising mobile Internet usage and a regulatory push toward
converting cash payments into digital are expected to drive a rapid expansion
of online payments.
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