September 14, 2016
New Delhi, India, September 14, 2016 – PayU, the global online payment service provider, today announces that Citrus Pay, a leading Indian payments technology player, will become part of its Indian operation. PayU’s $130M transaction is the largest ever M&A cash deal in Indian FinTech, demonstrating its payments and financial services expansion strategy.
The deal will grow PayU India customers to more than 30 million, processing a forecasted 150 million transactions in 2016 worth a combined $4.2 billion, growing at 50%+ YoY. The agreement also enables PayU to quickly bring additional innovative financial services to market for its business and consumer customers.
Amrish Rau, currently Citrus Pay's Managing Director, will become CEO of PayU in India. Reporting to PayU Global CEO, Laurent le Moal, he will lead a talented entrepreneurial management team across PayU and Citrus Pay. Shailaz Nag, PayU Co-founder will focus on new areas of growth through new bank alliances, and Citrus Pay founder, Jitendra Gupta will drive PayU’s FinTech foray into credit through Citrus Pay's Lazypay. Nitin Gupta, PayU Co-founder, will help complete the transition to the new leadership team before departing PayU to pursue his entrepreneurial ambitions.
The Indian online payments industry is rapidly growing, attributed to a rise in smartphone use and an active policy push to drive financial inclusion. A recent Boston Consulting Group report estimated digital transactions will hit $500 billion by 2020, 10 times its current level.
The agreement, due to close in Q3 2016, capitalizes on this market growth and brings together two complementary businesses. PayU will be able to maximize its existing franchise in e-commerce, and grow vertical market leadership in the airline and telecoms industries. PayU will also continue to develop Citrus Pay’s consumer brands, LazyPay and Sellfie.
Laurent le Moal, CEO of PayU, said, Today’s announcement is a significant milestone for both businesses, as well as the FinTech industry in India. It is exciting for everyone across the PayU and Citrus teams as we bring together new capabilities that will help us to better serve our collective clients.
I’m delighted that Amrish Rau, Shailaz Nag and Jitendra Gupta will lead PayU in India and unite our future strategy. Everyone at Citrus Pay and PayU is driven by an entrepreneurial passion to increase access to financial services in emerging markets. We are excited about the opportunity to capitalize on our shared heritage in payments and build a broader financial services proposition, something PayU is focused on across all of the 16 countries we operate in.
Citrus Pay was founded in 2011 by Jitendra Gupta and Satyen Kothari. It has become one of the fastest-growing Indian FinTech companies.
PayU is part of Naspers, a global Internet and entertainment group and one of the largest technology investors in the world. Following completion of the deal, Citrus Pay will be wholly owned by Naspers, strengthening its Payments division and supporting its strategy to grow its financial services footprint across emerging markets with long-term growth potential.
Investec acted as the sole advisor to the transaction.
The PayU-Citrus deal was only agreed and signed on Tuesday (September 13), and formally announced today, less than six months after their first meeting.
Laurent le Moal, Global CEO of PayU, says of the deal, "Our decision to bring Citrus Pay onboard demonstrates our continued commitment to the Indian market and to building a large set of financial services solutions.
"Specifically, our newly combined entity makes us stronger and better able to achieve our strategic goals. We are leveraging our mutual capabilities to better serve our clients, growing new business lines with innovative consumer products, and building a strong and entrepreneurial management team."
PayU uses its payments heritage and expertise to deliver financial services in emerging markets. Our local operations in Asia, Central and Eastern Europe, Latin America, the Middle East and Africa enable us to be experts in these countries and provide the best solutions for the local market.
PayU is the leading online payment service provider in 16 high-growth markets, dedicated to creating a fast, simple and efficient payment process for merchants and buyers. Its 250+ payment methods and PCI-certified platforms are designed to meet every consumer’s needs.
The markets in which PayU operates represent a potential consumer base of nearly 2.3 billion people and a huge growth potential for merchants. PayU has more than 1,800 payment specialists based in these local markets supporting PayU’s 200,000+ merchants and the millions of consumers making online payments.
For more information, please visit www.payu.com.
Citrus Payments is leading the revolution towards mobile and digital payments across all spheres of a consumer’s life. As India’s fastest-growing FinTech company, Citrus provides consumer payments and mobile banking services. It partners with the top airlines, utilities, marketplaces, and 9000 other merchants to enable seamless, secure payments for 21 million consumers. Citrus is known for introducing industry-first payment solutions such as contextual payments, P2P payments, 1-click checkout, wallet for cabs, consumer analytics, native mobile app payments, etc. Few of the credible merchants associated with Citrus are Amazon, PVR, INOX, BookMyShow, ShopClues, Jet Airways, Indigo, GoAir, Faasos, Grofers, ZoomCar, Airtel, etc.
Citrus Payment’s leaders and MDs, Jitendra Gupta and Amrish Rau are at the forefront of driving digital transformations in the Indian financial services space.
For more information, please visit www.citruspay.com.
Founded in 1915, Naspers is a global internet and entertainment group and one of the largest technology investors in the world. Operating in more than 130 countries and markets with long-term growth potential, Naspers builds leading companies that empower people and enrich communities. It runs some of the world’s leading platforms in the internet, video entertainment and media.
Naspers companies connect people to each other and the wider world, help people live their daily lives and entertain audiences with the best of local and global content. Every day, hundreds of millions of people use the products and services of companies that Naspers has invested in, acquired and built, including Allegro, Avito, eMAG, Flipkart, letgo, Mail.Ru (LSE: MAIL), Movile, MultiChoice, OLX, PayU, ShowMax, SimilarWeb, and Tencent (SEHK 00700).
Naspers is listed on the Johannesburg Stock Exchange (NPN.SJ) and has an ADR listing on the London Stock Exchange (LSE: NPSN).
For more information, please visit www.naspers.com.