Fintech and payments organisation PayU just acquired majority stake in Red Dot Payment (RDP), a Southeast Asia focused online payment solutions provider. Now, the Netherlands-based PayU will utilise the purchase to expand into Southeast Asia in a bid to participate in high-growth markets.
Under the terms of the agreement, PayU has acquired a majority stake in RDP in a transaction valuing the company at US$65 million. The founder will continue to retain a stake in the company, while the majority of other shareholders will exit.
Formed in 2011 by a group of payment experts from various Fortune 500 companies, RDP has grown into one of Singapore’s largest homegrown a payment solutions company, delivering customised payment solutions for different enterprises at various sizes across Asia. With an expanding presence across Southeast Asia, like in Indonesia and Thailand, RDP has been focused on verticals such as online retail, hospitality, charity, food delivery and more.
According to one Google-Temasek study, Southeast Asia is expected to triple in size to US$240 billion in total payments volume by 2025. The region is already home to 350 million internet users across its six largest countries, exceeding that of the population of the United States, which is of interest to PayU.
Laurent le Moal, CEO of PayU, commented,
“We will now provide our existing global merchants access to Southeast Asia with a single API integration, thus strengthening our global PayU Hub platform.”
Featured image credit: Red Dot Payment
