PayU, the payments and fintech business of Naspers, has acquired a majority stake in Red Dot Payment (RDP), a Southeast Asia-focused online payment solutions provider.
With this transaction, PayU expands into the Southeast Asia region and brings the total amount deployed in fintech investments and M&A to more than $700 million over the last three years.
Formed in 2011 by a group of payment experts from various Fortune 500 companies in the industry, RDP has grown into Singapore’s largest home-grown online payment solutions fintech company.
With an expanding presence across the region that includes offices in Thailand and Indonesia, RDP has been focused on booming verticals such as online retail, hospitality, charity, food delivery and more.
Citing a Google-Temasek study, PayU said the Southeast Asia digital payments market is expected to triple in size to $240 billion in total payments volume by 2025.
The region is already home to 350 million internet users across its six largest countries, exceeding that of the population of the United States, presenting an immense business potential for global merchants.
“We will now provide our existing global merchants access to Southeast Asia with a single API integration, thus strengthening our global PayU Hub platform,” said Laurent le Moal, CEO of PayU. “PayU sees a vast opportunity in this region to grow and innovate further. We will continue to look for prospects to reinforce our footprints in this market.”
Randy Tan, CEO and founder of RDP, said it has never been so easy for global merchants to enter Southeast Asia as they benefit from RDP’s strong local connectivity combined with PayU’s global footprints and experience.
Under the terms of the agreement, PayU acquired a majority stake in RDP in a transaction valuing the company at $65 million. Tan will continue to retain a stake in the company, while the majority of other shareholders will exit.