PayU buys Citrus Pay for $130 mn

PayU, the global online payment service provider has acquired Citrus Pay, a leading Indian payments technology player for $130 million.

PayU’s $130 million transaction is the largest ever M&A cash deal in Indian fintech, demonstrating its payments and financial services expansion strategy.

The deal will grow PayU India customers to more than 30 million, processing a forecasted 150 million transactions in 2016 worth a combined $4.2 billion, growing at 50 per cent YoY. The agreement also enables PayU to quickly bring additional innovative financial services to market for its business and consumer customers.

Amrish Rau, currently Citrus Pay managing director, will become CEO of PayU in India. Reporting to PayU Global CEO, Laurent le Moal, he will lead a talented entrepreneurial management team across PayU and Citrus Pay.

Citrus Pay founder Jitendra Gupta will drive PayU’s Fintech foray into credit through Citrus Pay's Lazypay while Shailaz Nag, PayU co-founder will focus on new areas of growth through bank alliances. Nitin Gupta, PayU co-founder, will help complete the transition to the new leadership team before departing PayU to pursue his entrepreneurial ambitions.

The agreement, due to close in Q3 2016, capitalizes on this market growth and brings together two complementary businesses. PayU will be able to maximize its existing franchise in ecommerce, and grow vertical market leadership in the airline and telecom industries on the back of Citrus Pay’s platform.

PayU will also continue to develop Citrus Pay's consumer brands, LazyPay and Sellfie.

Laurent le Moal, CEO, PayU, said, "Today's announcement is a significant milestone for both businesses, as well as the fintech industry in India. It is exciting for everyone across the PayU and Citrus teams as we bring together new capabilities that will help us to better serve our collective clients."