Naspers-owned payment processing startup PayU India has acquired California-based payments security and mobile payments technology company Wibmo for ₹490 crores ($70 million). PayU plans to boost its merchant transactions offering by entering the field of security solutions.
Post the acquisition, PayU is now capable of offering all forms of digital payment for online merchant transactions including a gamut of payment offerings from payment gateway solutions to security solutions which Wibmo specializes in. Wibmo is a leader in 3D security space.
Founded by Govind Setlur and Veena Mistry in 1999, Wibmo specializes in authentication services and digital payments. Accel Partners, a venture capital firm who is an early investor in Wibmo has clocked 4X returns on its investments as it exits the startup as a part of the acquisition deal.
PayU has acquired stakes but Wibmo will continue to operate as a subsidiary of the Netherlands-headquartered PayU. Govind Setlur will continue to hold the leadership position in Wibmo and report to Anirban Mukherjee, PayU India’s newly appointed chief executive officer (CEO). Avendus Capital acted as the sole advisor to the acquisition deal.
Wibmo is certified by Mastercard, Visa and Rupay and can process card as well as mobile payments. It also works seamlessly with banks across 20 countries to offer payment authentication and risk-based decisions. The startup claims to process more than 1 billion online and mobile-based payment transactions.
PayU has plans to harness the data power of Wibmo that can help the former assess its merchants better. PayU Global CEO Aakash Moondhra explains his plans to offer credit to merchants in partnership with several financial institutions. The acquisition will add value to the entire payment ecosystem including banks, consumers and merchants.