Rapyd buys part of PayU 's global payments division for $610M

Rapyd, a London-based provider of Fintech as a Service, has agreed to buy a portion of PayU's global payments business for $610 million in cash.

Why it matters: The deal expands Rapyd's geographic reach while enabling PayU to focus on its largest — and most profitable — markets.

Details: Rapyd is acquiring PayU's Global Payments Organisation (GPO), which operates across 30 countries in Latin America, Central and Eastern Europe, and Africa.

Yes, but: The deal does not include PayU's payments operations in India, Turkey or Southeast Asia, which make up the most profitable part of its business.

Between the lines: The acquisition boosts Rapyd's regional payments coverage, which will total 41 licensed or regulated countries in which it can operate.

• "By combining Rapyd's capabilities in EMEA, APAC and the Americas with PayU GPO's expertise in emerging and developed markets, the acquisition significantly increases merchant reach and expands the Rapyd Global Payments Network," Rapyd CEO Arik Shtilman wrote in an emailed statement.

The other side: The sale will streamline the operations of PayU, the payments group of Netherlands-based internet giant Prosus, and allow it to focus on its largest markets.

• That includes India, where PayU serves more than 450,000 merchants and 2 million credit customers.

By the numbers: The GPO business had a total payment volume of $34 billion and made up around 30% of PayU's overall revenues in its most recent fiscal year.

• But it also contributed to an overall trading loss of $83 million, according to Prosus' most recent earnings report.

Of note: Rapyd has raised more than $800 million in funding to date and was most recently valued at $8.75 billion, according to Pitchbook.

• Its investors include Target Global, Coatue, General Catalyst, Tiger Global, Fidelity, Dragoneer and Stripe.