Rapyd raises $500M at $4.5B valuation to complete $610M PayU acquisition
Following the PayU acquisition, Rapyd’s workforce grows to 1,600 employees with revenues surpassing $1 billion.
Israeli fintech unicorn Rapyd has completed the acquisition of European fintech company PayU from Dutch investment firm Prosus for approximately $610 million, Calcalist has learned. To finalize the deal, which was signed on Thursday, Rapyd raised $500 million, most of it in equity and a small portion in debt. The company’s valuation in this funding round was approximately $4.5 billion, down from the $10 billion valuation the company achieved in 2021. The latest round takes Rapyd's total funding to over $1 billion and is among the biggest ever rounds in Israeli tech history.
The deal, initially signed in August 2023, has now been completed after receiving approvals from seven different regulators worldwide, as the company operates in numerous countries and holds various regulatory licenses. Following the acquisition, Rapyd will employ approximately 1,600 people and generate revenues exceeding $1 billion, with operations in Europe, the UK, South America, Asia, the U.S., and new operations planned to start in Israel in 2025.
Rapyd, founded in 2015 by Arkady Karpman, Arik Shtilman, and Omer Priel, is developing an international payments platform for businesses and consumers, facilitating bank transfers, digital wallet and bank transfers, and cash payments. In 2022, amid the technology industry boom, Rapyd was named the most valuable private high-tech company in Israel in a secondary transaction that valued it at approximately $15 billion.
In December, Calcalist revealed that Rapyd had applied to the Israel Securities Authority for an expanded license, with plans to use it to issue credit cards in the future, positioning itself to compete directly with credit card companies like Isracard, MAX, and others.
PayU GPO provides payment solutions for organizations and small and medium-sized businesses in emerging markets, operating in more than 30 countries globally. The acquisition includes PayU’s operations in Europe, the Middle East, Africa, and Latin America, but does not include its operations in India, Turkey, and Southeast Asia. Several other payment giants had competed for the acquisition in the tender.
Upon completion of the acquisition, Rapyd will be able to execute transactions in over 100 countries using more than 1,200 payment methods. It will also hold a financial activity permit in 41 countries and maintain a wide range of partnerships.
