Papaya Global agrees to acquire payments firm Azimo
Why it matters: Amid growing competition in the space, the deal gives Papaya Global a leg up in terms of its ability to do faster employee payments (regardless of geography) and lower costs by cutting out third-party payment providers.
- The deal will also help Papaya expand into other services.
Between the lines: Azimo runs a payment and remittance service that primarily competes against the likes of Wise (the former Transferwise).
- Its network is available in more than 160 countries; before the deal Papaya Global operated in 140 countries.
- While possibly opening up new geographies for Papaya Global, the deal also reduces the reliance on third-party payments providers for customers’ payroll.
- And that will lower costs and increase the speed with which client employees get paid.
The intrigue: The deal could also open up a new revenue line for Papaya Global, by enabling it to provide cross-border remittance or payments services to those employees themselves.
State of play: Papaya Global competes against a number of startups that help businesses manage remote workforces around the world, including Deel, which raised $425 million last October, and Remote, which raised $150 million in July 2021.
Flashback: Papaya Global raised $250 million at a $3.7 billion valuation from investors that included Insight Partners and Tiger Global last September. In total, it has raised $440 million.
- Azimo, meanwhile, had raised $88 million and was backed by investors like Rakuten and Greycroft.