PayU, a subsidiary of media group Naspers, acquired a majority stake in Red Dot Payment, a Singapore-based online payment technology provider backed by internet company GMO and telecommunications firm Telkom Indonesia, today.
The deal values Red Dot at $65m and the majority of its shareholders have exited, though some, including founder Randy Tan, will retain a minority stake. The company had disclosed more than $7m in funding pre-acquisition.
Founded in 2011, Red Dot operates an online platform that enables merchants to accept payments from customers online or over the phone. They can also use it to send and process invoices, and manage and collect subscriptions.
The company has supplied its software to businesses across Southeast Asia in a variety of areas including e-commerce, hospitality, charity and food delivery. In addition to Singapore, it also operates offices in Indonesia and Thailand.
PayU, Nasper’s e-commerce and financial services and technology subsidiary, will leverage the acquisition to expand into Southeast Asia, and will integrate Red Dot’s platform into its own payments offering.
Red Dot closed a $5.2m series B round in 2017 that included GMO Venture Partners and MDI Ventures, subsidiaries of GMO and Telkom Indonesia respectively.
Wavemaker Partners, Door Group and Toivo Annus also contributed to the series B round, which followed a total of at least $2m in funding from MDI Ventures, GMO Venture Partners, Wavemaker and Annus that was raised across rounds in 2014 and 2016.
