Turkish neobank Papara has officially announced the acquisition of SadaPay. How good is the deal?

Just over three months after first reaching an agreement, Turkish neobank Papara officially announced its successful acquisition of Sadapay, a Pakistani EMI company that is a flagship example of fintech startups in the country.

“We are pleased to announce that we have successfully acquired Pakistani neobank SadaPay. This acquisition represents a significant strategic expansion into the Middle East and South Asian markets,” Papara said in a Linkedin message.

In a message to his team, SadaPay CEO Brandon Timinsky said that the State Bank of Pakistan has finally given regulatory approval for the transaction.

Work on the transaction took many months, first for many months while both sides were working out the details, and from February while waiting for the central bank’s approval. Although the details of the transaction and the valuation at which it was made have not been announced, Profit Understands The value of the all-stock transaction is estimated at approximately $30 million.

As part of the deal, Papara will also pump $10 million into the startup. This will be encouraging for the State Bank of Pakistan and the entire fintech landscape in the country. But what might this acquisition look like and did Sadapay get a good deal? After all, it was a startup that at one point was valued at around $100 million. However, the deal may still make sense and actually be worth more than it appears at first glance.

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