According to reports, PayU which is backed by Naspers is in the final stages to acquire payment processing startup Citrus Pay in an all cash deal. Reports also suggest that the startup has been offered around USD 150 – 180 Million for the acquisition.
If this actually materializes, it could be India’s largest deal in the finance technology sector. Till now, the biggest deal is the acquisition of online recharge platform FreeCharge by Snapdeal. Sources say that if all goes well the deal is expected to close in a month or two. Currently both the companies provide payment solutions to merchants who operate online. Post acquisition, the two entities will be combine and emerge as the leader in the online commerce space in terms of market share.
The deal will also mark the exit of Citrus Pay’s existing investors from the company, including Sequoia Capital, Ascent Capital and Japanese strategic investors Beenos and Econtext Asia. Sequoia holds about 32% of the five year-old company, while other investors own about 25%.
Naspers is expected to invest around USD 30-40 Million into the company, after the acquisition. Both Jitendra Gupta and Amrish Rau will be part of the PayU management. Along with that, all 300 employees of the startup are also expected to be retained.
Founded in 2013,Citrus Pay is a payment solutions provider offering its services through payment processing, enterprise payment SaaS solutions and consumer payment services. The startup raised more than USD32 Million in three funding rounds. Most recently, it raised a USD25 Million Series C round of funding from Sequoia Capital, eContext Asia, Beenos Asia and Ascent Capital. Last year the venture up had tied-up with RuPay and Visa in order to deepen its presence within payment space.