NomuPay — the payments startup that emerged from the remnants of the unsuccessful fintech company Wirecard — has completed an acquisition to further improve its economies of scale. The company has acquired Total Processing, a Manchester-based startup specializing in building payment processing solutions for recurring payments, risk management, PCI compliance, and payment integrations.
NomuPay’s acquisition of Total Processing amounts to approximately $35 million, increasing the total value of the company to $135 million.
Interestingly, Total Processing, founded in 2015, does not appear to have publicly disclosed any external funding up to this point.
Earlier this year, NomuPay, based in Dublin, revealed a funding raise of $53.6 million. Although PitchBook estimated the startup’s value at just under $172 million in September 2022, NomuPay’s CEO Peter Burridge disagrees with this figure, stating that the company’s valuation has consistently been on the rise.
This is a particularly noteworthy achievement considering the numerous down-rounds and write downs observed in the tech industry over the past year.
Up to this point, NomuPay has been primarily focused on managing payments in Southeast Asia, Europe, Turkey, and the Middle East in the long term. However, Burridge expressed that the acquisition of Total Processing presents an opportunity to augment their core payments feature with additional tooling and enhance customer services for business users.
Highlighting the significance of the deal, Burridge remarked, “No one drives a car without a spare tire.” He emphasized that Total Processing’s tech stack is dedicated to resolving merchant challenges, providing a consultative approach that differentiates it from competitors such as Stripe or Adyen, where direct communication with real individuals is scarce.
The plan moving forward involves scaling Total Processing to expand into new markets, commencing with Hong Kong and Southeast Asia. With Total Processing’s strong presence in the UK and the United Arab Emirates, NomuPay intends to leverage this to broaden its own footprint. Neither company has disclosed details regarding their customer base or turnover (i.e., revenues).
Given the challenging funding environment, mergers and acquisitions are increasingly becoming viable options for startups seeking additional runway to operate or grow. This trend reflects the current market dynamics favoring buyers and backers.
Consolidation has been a prevalent theme in the fintech sector preceding the recent funding downturn. Thin margins persist for many digital payments services, prompting companies to combine forces to achieve better economies of scale across broader geographies or to offer a comprehensive stack of services to customers.