South Africa based Naspers set to buy Citrus Pay for USD180m

August 08, 2016

South African media and internet conglomerate Naspers is set to acquire Citrus Pay for around $150-180 million, in an all-cash transaction, making it one of the largest deals in the Indian payments market.

Naspers which is currently running Ibibo and PayU group in India is expected to emerge as the leader in the online commerce space in terms of market share. Both Citrus and PayU focus on providing payment solutions to a growing tribe of merchants who operate online, and are largely business-facing in nature.

Venture capital fund Sequoia Capital, an early investor in Citrus, which holds around 30% in the Mumbai-based company, is expected to make a healthy return of over 10-12 times on its investment.

Five year old PayU has raised $32 million in risk capital. In the company investors collectively owns around 50% in the company. Less than a year ago company raised $25 million from Sequoia and Ascent Capital and currently in talks with potential investors to raise more capital before the acquisition finalised.

Founded in 2011 by Jitendra Gupta and Satyen Kothari, Citrus acts as a bridge between bank accounts of merchants and banks and credit card companies. The Citrus-PayU combine will dominate e-commerce payments, although BillDesk would be bigger if utility bill payments were included.

August 08, 2016

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