Rapyd Secures $500M Funding at a $4.5B Valuation to Finalize $610M Acquisition of PayU
Israeli fintech unicorn Rapyd has finalized its acquisition of PayU, a European fintech company, from the Dutch investment firm Prosus for approximately $610 million, as reported by Calcalist.
To complete the deal, which was officially signed on Thursday, Rapyd raised $500 million, primarily in equity, with a small portion in debt. This latest funding round values Rapyd at around $4.5 billion, a decline from its $10 billion valuation achieved in 2021. With this funding, Rapyd’s total raised capital now exceeds $1 billion, making it one of the largest funding rounds in Israeli tech history.
The acquisition, initially signed in August 2023, was finalized after receiving approval from seven global regulators, due to Rapyd’s international operations and multiple regulatory licenses. With the deal now complete, Rapyd will expand its workforce to around 1,600 employees and is set to generate revenues exceeding $1 billion. The company will also expand its operations across Europe, the UK, South America, Asia, and the US, with plans to establish operations in Israel by 2025.
Founded in 2015 by Arkady Karpman, Arik Shtilman, and Omer Priel, Rapyd has developed a global payments platform that enables businesses and consumers to make bank transfers, digital wallet transactions, and cash payments. In 2022, Rapyd became Israel’s most valuable private tech company, reaching a valuation of approximately $15 billion.
PayU, which provides payment solutions to small and medium-sized businesses in emerging markets, operates in over 30 countries globally. Rapyd’s acquisition includes PayU’s operations in Europe, the Middle East, Africa, and Latin America, but excludes its operations in India, Turkey, and Southeast Asia. Other major payment companies had also competed for the acquisition in the tender.
Post-acquisition, Rapyd will be able to execute transactions in over 100 countries, offering more than 1,200 payment methods. The company will also hold a financial activity permit in 41 countries and maintain a wide range of global partnerships.