Naspers-owned PayU doubles down on India with $70M deal to buy Wibmo

0
8

PayU, the Naspers-owned payments company that competes with the likes of PayPal but focuses mainly on emerging markets, has made an acquisition to expand its business in India. It has acquired Wibmo, a startup based out of the US (Cupertino, to exact) that mostly operates in India. PayU is paying $70 million for the startup, bringing the total its invested in building its business to $500 million in the last two months.

Wibmo offers a range of payment processing services that cover security, risk and fraud, authentication, SME disbursements, mobile payments, QR codes and prepaid cards. It works with banks, merchants and offers consumer-facing services, too. The appeal to PayU appears to be an opportunity to own touchpoints across the payment process, a bridge to develop its own ecosystem, although Wibmo will keep its branding and run as a wholly-owned subsidiary.

The deal had previously been reported by Economic Times last month, and it speaks to ongoing consolidation.

“This is a strategic acquisition for PayU that combines our merchant network and Wibmo’s leadership in digital security,” Aakash Moondhra, Chief Financial Officer at PayU Global, told TechCrunch in an interview. “PayU is very bullish on India as a market.”

A Citi report