PayU, a payments company backed by Prosus, is reportedly looking to raise $300 million by selling off a minority stake. The company has enlisted HSBC as its banking partner for the deal, which is still in its early stages, according to a report.
Key Highlights
- PayU explores $300 million minority stake sale ahead of anticipated 2026 IPO, working with HSBC.
- The deal aims to gauge investor appetite and set valuation benchmarks ahead of PayU’s public debut.
The minority stake sale is intended to determine investor demand and establish a benchmark valuation for PayU's initial public offering (IPO), which is anticipated to take place in 2026. The fundraising effort precedes a plan to list on Indian stock exchanges.
PayU purchased a 43.5% strategic stake in Mindgate Solutions, a company that develops real-time payment technology, in March. The business collaborates with the biggest banks in the nation and is among the biggest UPI technology service providers in the sector.
Prosus is still a major shareholder in PayU, and it recently supported the Mindgate investment and invested $35 million in the company's credit division.
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Through a gateway that accepts cards, UPI, wallets, EMIs, and QR codes, PayU India assists companies in accepting digital payments. It provides no-code tools like payment links and invoicing to make setup easier for its half a million merchants. Additionally, the business adds value with enterprise-grade features like split payments, analytics, tokenization, fraud protection, and AI-driven recommendations.
In terms of lending, PayU offers credit to people and companies that are underserved by conventional banks. With an NBFC license approved by the Reserve Bank of India, it provides "buy now, pal later" options, EMIs, and instant loans.
Transaction fees from its payments division and interest or processing fees from its lending division are how PayU makes money. PayU's overall revenue increased 21% to $669 million for the fiscal year that ended in FY25, while its India payments business grew 12% to $498 million.
