SadaPay is one of the most popular Electronic Money Institutions (EMIs) in Pakistan. Many consider it to be the poster child for fintech startups in the country. According to the latest announcement, the Turkish Neobank Papara has acquired this EMI.
The statement was made only this week, while the original deal was concluded several months ago. When using SadaPay’s services, new users can anticipate a far more simplified experience.
Customers of SadaPay who are currently using the service can anticipate a variety of new offerings. This means that they will have the options for savings and wealth management
Acquisition of SadaPay
According to the LinkedIn message on the official Papara account, they announced their acquisition of the Pakistan-based neobank SadaPay. The latter has been the top choice for Pakistani users for local and international transactions.
Furthermore, Papara’s LinkedIn page also announced that this acquisition would mark a major move towards expansion in the South Asian and Middle East markets.
Did SadaPay Get a Good Deal?
SadaPay CEO Brandon Timinsky announced that the deal will go ahead after regulatory approval from the SBP (State Bank of Pakistan). The deal had taken place a couple of months ago but wasn’t finalized due to the pending approval from SBP.
According to the deal, the Turkish Neobank will inject around $10 million into SadaPay. This might sound like an encouraging aspect for the SBP as well as the fin-tech industry in Pakistan. However, many people wonder did SadaPay got a good deal.
It is primarily due to the fact that the startup had a valuation of close to $100 million at one point. However, it looks as if SadaPay got a good deal and it will be worth more than what it looks on the surface.
Final Go-Ahead by the SBP
As mentioned before, the deal between the Turkish and Pakistani Neobank has been taking place for months. Both parties hashed out the details and ever since then waiting for the final approval from the SBP for the deal to go ahead since February 2024.
There are no precise and accurate details about the deal between the two banks. In addition to that, the valuation is also not disclosed to the general public. However, many financial experts and analysts believe that the stock deal between Papara and SadaPay will be close to $30 million.