PayU India Receives Additional ₹303 Cr from Prosus Ahead of IPO Plans

Digital payments leader PayU India has secured an additional ₹303 crore (approx. $35.6 million) investment from parent company Prosus, as it continues preparations for its much-anticipated IPO scheduled for late 2025.

The funding came via Prosus' investment arm, MIH Payments Holdings B.V., and follows a ₹1,013 crore infusion earlier this year. According to regulatory filings with the Registrar of Companies (RoC), PayU’s board has allotted 4.86 crore equity shares at ₹62.21 per share through a rights issue to raise the latest amount.

This strategic capital injection comes on the heels of PayU receiving final authorization from the Reserve Bank of India (RBI) to function as an official online Payment Aggregator, empowering the fintech firm to onboard new merchants across India.

Founded in 2002 by Nitin Gupta, Shailaz Nag, Jose Velez, Martin Schrimpff, Arjan Bakker, and Grzegorz Brochocki, PayU offers digital payment solutions to over 500,000 merchants in India. Its services span across payments, credit, and PayTech, with the company adding 13,000 new merchants in the last year alone.

While PayU had originally intended to launch its IPO in 2024, market conditions led to a revised timeline targeting the end of 2025. The company has also made strategic moves in the sector, including the acquisition of a 43.5% stake in Mindgate Solutions, a payments technology firm.

For FY25, PayU’s India payments business reported 12% year-on-year growth, reaching $498 million, while total revenue stood at $669 million, a 21% increase. Despite the top-line growth, the firm posted an adjusted EBIT margin of -7%, according to Prosus’ FY25 annual report.

The latest funding is expected to further strengthen PayU’s technology capabilities and merchant network, positioning the company to capitalize on India’s rapidly evolving digital payments landscape.