Fintechs in $500m PayU bidding battle

Investment firm Prosus has decided to sell international fintech company PayU, which operates in Europe, Asia, and South America. The tender process for the purchase will be managed by Bank of America, according to sources familiar with the matter. Two companies with Israeli ties, Rapyd and Nuvei, are said to be competing in the tender. Rapyd is Israel’s largest fintech unicorn, while Nuvei is a Canadian payments giant that previously acquired SafeCharge. Other companies, including Worldpay, are expected to participate in the final stage of the tender. Although the exact sale value has not been disclosed, it is estimated to be over half a billion dollars.

PayU has a connection to the Israeli market through its acquisition of Israeli company Zooz in 2018 for approximately $80 million. It currently maintains a development centre in Israel with dozens of employees. Rapyd, founded in 2015, has a track record of acquiring companies and operates the largest online payment network globally, supporting over 65 different currencies across more than 170 countries. The company offers an international payment platform that enables bank transfers, transfers to digital wallets, cash payments, and more.

A spokesperson from Prosus declined to comment on market rumours or speculation. The sale of PayU signifies Prosus’s strategic decision to divest itself of the fintech company, and the tender managed by Bank of America will determine the future ownership of PayU. The involvement of companies like Rapyd and Nuvei highlights the competitive nature of the tender process, with several players vying for the acquisition of PayU, a significant player in the international fintech space.