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PayU, the Naspers owned fintech firm that specializes in emerging markets, is broadening its global reach into Southeast Asia after it announced a deal to buy a majority stake in Singapore-based Red Dot Payment.
Naspers is best known for its payments and fintech business in markets like India, Latin America, Africa and Eastern Europe, but now it will enter Southeast Asia, a market with over 600 million consumers and rapidly rising internet access.
PayU - Red - Dot - Startup - Finance
PayU plans to tap that potential through Red Dot, an eight-year-old startup founded by finance veterans which offers services that include a payment gateway, e-commerce storefronts and online invoicing across Southeast Asia. PayU said it has acquired “a majority stake” in the business. It did not specify the exact size but it did disclose that the deal values Red Dot at $65 million.
It isn’t clear exactly how much Red Dot had raised from investors overall — its Series B was $5.2 million but the value of prior rounds were not disclosed — but its backers include Japan’s GMO, Wavemaker, Skype co-founder Toivo Annus and MDI Ventures. The company said that that “the majority” of its investors exited through this transaction, but some stakeholders — including CEO Randy Tan — are keeping shares with a view to a later buyout in full.
PayU - CEO - Laurent - Le - Moal
That’s important for PayU, according to CEO Laurent le Moal, who stressed that the company believes in retaining teams and empowering them through acquisitions, rather than simply buying an asset.
“We have to strike the balance between a solid majority [acquisition] and an opportunity” for founders, he told TechCrunch in an interview.
PayU - Investment - Startup - Whilst - Services
PayU plans to put “real investment” into the startup, whilst also integrating its services into its ‘Hub’ of services and tech, a stack that is shared with its mesh of global business and was built from its acquisition of...
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