Israeli fintech unicorn Rapyd has successfully completed the acquisition of European fintech company PayU from Dutch investment firm Prosus for approximately $610 million. The deal, which was signed on Thursday, was finalized after Rapyd raised $500 million, primarily through equity, with a smaller portion sourced from debt. Following this funding round, Rapyd’s valuation stands at around $4.5 billion, a significant decrease from the $10 billion valuation it achieved in 2021. This latest funding round brings Rapyd’s total funding to over $1 billion, marking it as one of the largest funding rounds in Israeli tech history.
The acquisition, initially signed in August 2023, has now been completed after receiving approvals from seven different regulatory bodies worldwide. This extensive regulatory process was necessary due to Rapyd’s operations in multiple countries and its possession of various regulatory licenses. Following the acquisition, Rapyd will employ approximately 1,600 people and is projected to generate revenues exceeding $1 billion. The company operates across Europe, the UK, South America, Asia, and the U.S., with plans to expand its operations into Israel by 2025.
Founded in 2015 by Arkady Karpman, Arik Shtilman, and Omer Priel, Rapyd is focused on developing an international payments platform that caters to both businesses and consumers. The platform facilitates a variety of payment methods, including bank transfers, digital wallets, and cash payments. In 2022, during a period of significant growth in the technology sector, Rapyd was recognized as the most valuable private high-tech company in Israel, achieving a secondary transaction valuation of approximately $15 billion.
In December, it was reported by Calcalist that Rapyd had applied to the Israel Securities Authority for an expanded license, with intentions to issue credit cards in the future. This move positions Rapyd to compete directly with established credit card companies such as Isracard and MAX.
PayU GPO, the division being acquired, provides payment solutions for organizations and small to medium-sized businesses in emerging markets, operating in over 30 countries globally. The acquisition encompasses PayU’s operations in Europe, the Middle East, Africa, and Latin America, but notably excludes its operations in India, Turkey, and Southeast Asia. The acquisition attracted interest from several other payment giants, highlighting the competitive landscape for such strategic moves in the fintech sector.
With the completion of this acquisition, Rapyd will enhance its capabilities to execute transactions in over 100 countries, utilizing more than 1,200 payment methods. The company will also hold a financial activity permit in 41 countries and maintain a diverse array of partnerships, significantly expanding its reach and operational capacity in the global payments landscape.
