PayU set to acquire Citrus Pay for $180m

PayU, a payments provider owned by South African multinational Naspers, is acquiring Indian payments and mobile banking service Citrus Pay.

The company will reportedly pay between $150m and $180m in an all cash deal for the startup. If the deal is successful it will be the largest to date in Indian fintech.

Naspers will reportedly invest between $30m and $40m following the acquisition that will see Citrus Pay merged into PayU.

Citrus Pay’s management and 300 employees are all expected to remain.

The company has raised $32m since launching in 2011, most recently taking on $25m from investors in a Series C round last October. Its backers include including Silicon Valley veteran Sequoia Capital, which reinvested in the Series C round.

All of the startup’s investors will reportedly exit following the deal.

Citrus Pay claims to process $2.5bn in payments annually with 21m users and 11,000 merchants on the platform.

Neither company has commented on the reports.

Copyright © 2016 FINTECH GLOBAL