PayU plans to raise up to $300 million ahead of IPO: Report

Prosus-backed payments company PayU is planning to sell a minority stake to raise $300 million, according to media reports. The fintech platform is currently in the early stages of its fundraising process.

The report said PayU is working with HSBC to structure the deal, which will gauge investor interest and set a valuation benchmark ahead of its planned IPO on Indian stock exchanges, likely in 2026.

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“PayU is looking to raise approximately $250 Mn to $300 Mn to diversify its shareholder base and strengthen its market position as it gears up for its IPO. The company has recently strengthened the board to reinforce governance and is taking additional steps to support sustainable growth,” a source was quoted as saying. 

However, talks are still in the early stages, and the participating investors have not been disclosed.

Prosus remains a major shareholder in PayU and recently invested $35 million into its credit division, while backing the Mindgate investment, underscoring its strong confidence in India’s fintech potential.

Founded in 2002 and spun out of Ibibo in 2014 by co-founders Nitin Gupta and Shailaz Nag, PayU India operates in two main areas: payment gateways and digital financing. Its payments division, which became profitable in H2 FY25, recorded a 12% year-on-year sales growth, reaching $498 million.

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