KARACHI: Papara, a financial technology giant headquartered in Turkiye’s Ankara, is currently in talks with SadaPay, a Pakistan-based financial technology company, for a potential merger deal worth nearly $50 million, according to people familiar with the developments.
Papara, an electronic money and payment services organization, is the first non-banking entity to issue a prepaid card with Mastercard logo in Turkiye. Launched in 2016, the fintech has 18 million users and provides digital wallet services, allowing users to make payments, transfer money, and perform various financial transactions through their mobile phones or online platforms.
SadaPay, on the other hand, is regulated by the State Bank of Pakistan (SBP) and is a wholly-owned subsidiary of SadaPay Technologies Limited, registered with the Dubai International Financial Center.
The deal for “complete ownership” of SadaPay by the Turkish fintech giant is in advanced stages and if finalized, it would pave the way for an immediate investment of around $10 million in Pakistan, said sources familiar with the developments.
Reached for comment, Brandon Timinsky, CEO of SadaPay, told Arab News that he was “not able to provide any official statement at this time.”
Other key officials of SadaPay also declined to comment, but a fintech source called the possible merger a “good development” for Pakistan.
“This is a good development for Pakistan’s startup ecosystem,” the official said, requesting anonymity. “This deal will pave the way for further investment of around $10 million in addition to actual value of the deal to boost operational capacity [of SadaPay].”
He said the deal would likely be in the range of $30-50 million, under which “100 percent ownership” of SadaPay would be transferred to the Turkish firm.
Dealroom.com, a global provider of data and intelligence on startups and tech ecosystems, valued SadaPay at $43-64 million in April 2022.
The final details of the deal are expected to be made public after a regulatory approval from the Pakistani central bank.
