Naspers’ PayU buys Citrus Pay for $130M in cash to expand in India - 14-Sep-2016
Hundreds of millions of dollars of investment have been put into commerce startups in the fast-growing market of India, from marketplaces like Flipkart and Snapdeal through to payment startups like PayTM. Now one of the more interesting of these has been acquired. PayU, an online payments company with a focus on developing markets that is owned by South Africa’s Naspers, has acquired India’s Citrus Pay for $130 million in cash, in what the companies say is the largest cash exit for a payments company in India to date.
The deal, which will close in Q3, will create a larger footprint for PayU in India with over 30 million customers and projected to process 150 million transactions in 2016 worth $4.2 billion. Today, both companies offer digital wallet services — essentially a way of topping up and spending money online and on mobile for people who may not have payment cards — and payment services for online and in-store merchants. The combined company will use this to compete better with others like PayTM, which is the largest payments and mobile wallet provider in the country.