PayU, the payment and fintech division of Naspers, announced the acquisition of a majority stake in Red Dot Payment (RDP), a provider of online payment solutions for the South East Asian market. With this transaction, PayU expands to the South East Asia region and brings the total amount invested over the past three years into acquisitions and mergers at USD 700 million.
Founded in 2011 by a group of payment experts from various Fortune 500 industry companies, RDP has become the largest and most trusted fintech online payment solution company in Singapore, providing innovative, secure payment solutions customized for all Asian companies and everywhere. With a growing presence in Southeast Asia, including offices in Indonesia and Thailand, RDP has focused on booming verticals such as online retail, hospitality, charity, food delivery and much more.
According to a Google-Temasek study, Southeast Asia is one of the world’s fastest growing digital payment markets and expects to triple up to a total volume of US USD 240 billion in payments by 2025. The region hosts already 350 million internet users in the six largest countries, thus surpassing the population of the United States and posing a huge business potential for global traders. With this acquisition, PayU successfully creates a winning proposal for global merchants by integrating RDP platforms into the PayU HUB.
“This investment is the first step of PayU to the expansion of the South East Asia region. We will now offer our existing global traders access to Southeast Asia with a single API integration, thus consolidating the PayU HUB global platform, due to the huge potential of the South East Asian market, PayU sees a great opportunity for development and innovation in the region, and we will continue to look for opportunities to strengthen our position on this market,” says Laurent le Moal, CEO of PayU. “As part of our business strategy, PayU will work with the founders of the company, whose entrepreneurial passion is valuable. We are delighted to have Randy and his team on hand with PayU as we continue to follow our vision of create a world without financial borders,” he added.
“We are proud of how far we have come and that PayU, a global leader and principal investor in the fintech market, recognizes the strength, depth and breadth of the company we have built with an unwavering commitment in the last eight years, it has never been easier for global traders to enter Southeast Asia as they now benefit from strong local RDP connectivity combined with global PayU expertise and experience. That the RDP will be part of Nastech’s fintech portfolio and we are eager to continue expanding our business position in the South Asian market to be Finch’s finest payment solution in this region,” says Randy Tan, CEO and founder of Red Dot Payment.
Under the terms of the agreement, PayU acquired a majority stake in the RDP in a company valuation transaction at US USD 65 million. The founder will continue to keep a stake in the company and the other major shareholders will exit. Evolve Capital Asia acted as an exclusive financial advisor to the founder and share sellers.