Azimo is headquartered in London based on its Linkedin page but it was also reported on multiple newspapers and Wikipedia that its headquarters have moved to the EU (Amsterdam) as a result of Brexit. Papaya Global is an Israel-based software and payments startup that was established in 2016 and deals exclusively with global payroll management which is valued at $3.7bn based on its most recent funding rounds. Israel newspapers have reported the deal at $150-200m.

Alon Rajic, CEO of Money Transfer Comparison, an international money transfer guide which reviews and compares UK’s best options for individuals and businesses looking to transfer money abroad, has shared his insights on the deal. He said that $150m-$200m is a rather low valuation for a startup like Azimo which is operating for more than 10 years, employs close to 200 employees, and boasts serving more than two million over this timeframe. Moreover, it was announced by Papaya Global that they would completely shift Azimo’s model around in order to merge it into their operations. Both the deal’s size and that announced by Papaya Global has lead Mr. Rajic to believe that Azimo wasn’t particularly profitable or successful prior to the acquisition.

While considering the above, this is far from being the worst scenario for a startup. In Azimo’s case, its founders are going to still get a piece of a sizable amount of money, while its investors are going at the very least not LOSE money on the deal (Azimo’s most recent funding round was made at a valuation of under $100m). Perhaps, Azimo’s investors are not going to see as much money as they originally anticipated upon making an investment, but that sale is far from being bad news.