Prosus-backed PayU, a leading digital payments company in India, is preparing a fundraising round of up to $300 million through a minority stake sale, with HSBC appointed as its banking partner. This move is aimed at gauging investor interest and establishing a valuation benchmark ahead of its anticipated IPO in 2026 on Indian stock exchanges.
Fundraise and IPO Strategy
- Objective: The stake sale is intended to test investor appetite and set the tone for PayU’s market debut.
- IPO Timeline: The public listing is expected in 2026, with this fundraise serving as a precursor to the IPO.
- Transaction Status: Discussions on valuation and structure are ongoing, as the company navigates early-stage fundraising steps.
Expansion and Shareholder Support
- Acquisitions: Earlier in 2025, PayU acquired a 43.5% stake in Mindgate Solutions, enhancing its capabilities in real-time payment technology and reinforcing its role in the UPI payments ecosystem.
- Prosus Backing: The parent company, Prosus, has injected $35 million into PayU’s credit arm and supported the Mindgate acquisition, demonstrating confidence in the company’s long-term growth.
Business Operations and Offerings
- Payments Ecosystem: PayU India supports cards, UPI, wallets, EMIs, QR codes, and no-code solutions like payment links and invoicing.
- Enterprise Solutions: Offers features like fraud prevention, analytics, tokenisation, split payments, and AI-powered recommendations.
- Lending Operations: As an RBI-licensed NBFC, PayU provides instant loans, EMIs, and buy-now-pay-later solutions to individuals and businesses underserved by traditional banks.
Financial Performance
- Payments Revenue: $498 million in FY25, up 12% YoY.
- Consolidated Revenue: $669 million, reflecting a 21% YoY growth, driven by strong demand across payments and credit businesses.
Summary
PayU is strategically leveraging a $300 million minority stake sale to prepare for its 2026 IPO, test investor sentiment, and benchmark its valuation. With strong backing from Prosus, recent acquisitions, a robust digital payments and credit ecosystem, and healthy revenue growth, PayU is positioning itself as a key player in India’s rapidly evolving digital payments landscape.
Disclaimer:
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