Avendus advises Wibmo, a digital payments company, on its acquisition by PayU for USD 70 million

Service

Mergers & Acquisitions

Sector

Digital & Technology

Date

April 2019

Deal Value

USD 70 million

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PayU, an online payment service provider and Naspers’ fintech arm, today announced the acquisition of Wibmo, a Cupertino, CA-based industry leader in digital payment security and mobile payment technologies. This strategic acquisition combines PayU’s strong merchant network and Wibmo’s leadership in digital transaction security solutions to offer industry leading payments solutions to merchants and financial institutions in India and other high growth markets.

Avendus was the exclusive strategic and financial advisor to Wibmo on the transaction.

Wibmo, an innovative digital payment company partners and deeply integrates with banks in over 20 countries to offer payment authentication and risk based decisioning across billions of online and mobile payment transactions. The acquisition of Wibmo will enable PayU to build a robust digital payment ecosystem capable of harmonizing transaction processing on both issuing and acquiring side, to deliver a seamless payment experience and industry-leading success rates in online and mobile payments. Additionally, PayU and Wibmo together will be able to work with merchants and financial institutions to offer targeted payment solutions leveraging data from touching hundreds of millions of Indian consumers annually. This acquisition will also help PayU accelerate its credit business by leveraging big data to power credit to various online and offline merchants in partnership with leading lending players. 

Wibmo has also built and operates a robust platform for banks to power mobile payments solutions. PayU and Wibmo will leverage this platform to partner with leading banks and be a catalyst in creating a full suite mobile commerce and payment ecosystem in multiple countries.

Aakash Moondhra, CFO, PayU Global said, “India is a priority market for PayU and we are committed to making digital payments frictionless through our innovative products and services, supporting the Government’s vision of a digital India. PayU’s technologically future-ready products are defining and reinventing India’s payments landscape, supporting the country’s transition to a cashless, digital economy. Through the acquisition of Wibmo, our endeavour is to positively impact and add value to the entire ecosystem including banks, consumers and merchants, with the combined service offerings of PayU and Wibmo. We will partner with leading banks to enable digital banking, merchants will gain with higher conversions rates and increased sales, and consumers will have a frictionless experience in completing digital payments transactions.”

Govind Setlur, Founder and CEO, Wibmo added, “PayU has evolved within the complex payments landscape to become India’s biggest online payments processor, serving more than 350,000 merchants. We are excited to embark on this next chapter of Wibmo’s growth with PayU. By combining our track record and expertise in payment security and mobile payments with PayU’s strong merchant network and heritage in payments, the combined entity will be focused on delivering more secure and seamless payments experience to its customers.” 

Karan Sharma, Co-Head, Digital and Technology Investment Banking at Avendus Capital said, “Wibmo's leadership and innovation in the payment security and mobile payments tech space combined with PayU's scale would enable superior offerings to its clients and end users. It has been a privilege to partner with Govind and the Wibmo team and look forward to seeing them take the business to another level under the PayU umbrella.”

The deal brings together two highly complementary businesses and enables them to offer innovative financial services and new capabilities to the merchants and financial institutions, thereby helping them grow and scale. Given different capabilities and positioning in the value chain, Wibmo and PayU businesses will continue to run separately. However, both teams will work together to extract synergies and build unique business solutions from the two tech platforms. Govind Setlur, Founder and CEO of Wibmo, a strong technology leader with 30 years of management experience in Silicon Valley and India, will become a part of PayU’s leadership team, reporting into the PayU India CEO. 

The investment takes PayU’s fintech investment total past the USD 500 million mark, putting the company within the top five leading global fintech investors over the last two years.

About Avendus Capital Pvt Ltd

The Avendus Group (Avendus) is a leading provider of financial services with an emphasis on customized solutions in the areas of Investment Banking, Wealth Management, Structured Credit Solutions and Alternative Assets Management. Avendus relies on its extensive experience, in-depth domain understanding and knowledge of the regulatory environment, to offer customized solutions that enable clients to meet their strategic aspirations. Avendus Capital has consistently been ranked among the top investment banks. It has a strong track record of cross-border transactions and has helped multiple clients benefit from opportunities across geographies. Avendus’ wide range of clients is testimony to its ability to serve its corporate clients throughout their life cycle – from growth stage funding to complex, large sized transactions later in the cycle. 

Avendus Capital Inc. and Avendus Capital (UK) Pvt Ltd located in New York and London respectively are wholly owned subsidiaries offering M&A and Private Equity syndication service to clients in the respective regions.

For more information, please visit www.avendus.com

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