SINGAPORE - Fintech and e-payment business PayU has taken a majority stake in Singapore online payment company Red Dot Payment (RDP), PayU said in a media statement on Friday (July 5).
The deal values RDP at US$65 million, and will see its founder and chief executive officer Randy Tan retaining a stake in the company, while a majority of other shareholders will exit.
It allows PayU to plant its flag in South-east Asia, and brings its total amount spent on fintech investments and merger and acquisitions to more than US$700 million over the last three years.
PayU, the payments and fintech business of South Africa-headquartered Internet group and technology investor Naspers, will integrate RDP platforms into the PayU Hub.
Evolve Capital Asia was the exclusive financial adviser to Mr Tan and RDP's selling shareholders.
Last year, RDP entered the African market after signing a memorandum of understanding with Finserve Africa, a Kenyan mobile virtual network operator.
The agreement involved collaborating on alternative e-payment methods such as WeChat and Alipay in Kenya, and was announced as part of Enterprise Singapore's push to help Singapore companies enter the African region.