NEW DELHI: PayU, the global online payment service provider, on Wednesday finalized the deal that Citrus Pay, a leading Indian payments technology player, will become part of its Indian operation. PayU’s $130 million transaction is the largest ever M&A cash deal in Indian fintech, demonstrating its payments and financial services expansion strategy.
The markets in which PayU operates represent a potential consumer base of nearly 2.3 billion people and a huge growth potential for merchants. 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.
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, ten times its current level.
Fintech company, Citrus provides consumer payments and mobile banking services.
Amrish Rau, currently Citrus Pay 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.
Laurent le Moal, CEO of PayU, said, “This 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.”
The agreement, due to close in Q3 2016, capitalizes on this market growth and brings together two complementary businesses.