Arcapita Group Holdings Limited, the global alternative investment firm based in Bahrain, said its consortium with Dgpays, a leading financial infrastructure technology provider in the EMEA region, has entered into a deal with Mashreq, one of the UAE’s leading financial institutions, to acquire a majority stake in one of its units Neopay, for $385 million.

 

Neopay is the UAE’s fastest growing payment solutions provider, with a strong foothold among merchants and e-commerce players. 

 

Founded as a strategic division within Mashreq, Neopay experienced significant growth in recent years, serving a diverse client base across key sectors such as retail, hospitality, government, and e-commerce. 

 

Its expansion is driven by the UAE's dynamic economic landscape, which is characterized by a young, digitally literate population, robust GDP growth, and the government’s ongoing initiatives to promote digital transformation and a cashless economy.

 

The UAE’s card transaction value is expected to grow at double-digit rates over the next five years, presenting substantial opportunities for Neopay to capture further market share.

 

The acquisition represents a significant milestone for the Emirati group as it aims to expand its presence in the rapidly growing digital payments sector in the Middle East. 

 

The strategic support of the consortium, positions Neopay to further accelerate its growth trajectory and offer new services, leveraging Dgpays’ cutting-edge technology.

 

Serkan Omerbeyoglu, CEO of Dgpays, said: "We are excited to support Neopay’s transformative journey in partnership with Mashreq. Neopay has demonstrated exceptional growth and innovation in the UAE’s digital payments landscape, and we see tremendous potential in expanding this success across the broader Middle East region. At Dgpays, our mission has always been to drive digital transformation in financial services through cutting-edge technology and strategic partnerships."

 

"By integrating our fintech solutions with Neopay’s robust platform, we aim to unlock new opportunities for growth and innovation and present these innovative solutions to the enterprise and SME market of the UAE and broader GCC market," he noted.

 

Atif A. Abdulmalik, CEO of Arcapita, said: "Neopay is fully aligned with Arcapita’s investment strategy which focuses on acquiring companies that are not only market leaders but also have strong growth potential driven by favorable macroeconomic trends."

 

"Neopay is well-positioned to benefit from the UAE's ongoing shift towards digital payments, supported by rising GDP, a tech-savvy young population, and government-led initiatives for digital transformation. Arcapita will support the next phase of Neopay’s growth into value-added services and new markets," he stated.

 

Ahmed Abdelaal, Group CEO, Mashreq, said the transaction was a key milestone in Neopay’s journey, allowing it to continue its strong growth trajectory as a regional leader in digital payments. 

 

"We are confident that Arcapita and Dgpays have the right expertise and vision to help Neopay achieve its ambitious expansion plans across the Middle East. While Mashreq retains a significant stake in Neopay, we are excited to see the company reach new heights as it scales its operations and reinforces its market leadership," he noted.

 

Vibhor Mundhada, CEO of Neopay, said the group was thrilled to embark on the next chapter of its growth with the support of Arcapita and Dgpays. 

 

"Neopay has established itself as a leader in the digital payments sector by consistently innovating and delivering value to our clients. With the technological and financial backing of our new shareholders, alongside Mashreq’s continued support, we are well-positioned to accelerate our growth in the UAE and expand our footprint across the Middle East," stated Mundhada. 

 

"We remain committed to advancing e-commerce payments and driving the broader adoption of digital payments across the region," he added.-TradeArabia News Service