Fintech Firm PayU Acquires 43.5% Stake In Mindgate Solutions

Prosus-backed fintech company PayU acquired a 43.5 percent stake in payments infrastructure company Mindgate Solutions for an undisclosed amount.

This partnership strengthens PayU's position in india's real-time payments market while leveraging Mindgate’s expertise to drive digital payment innovations worldwide.

As part of the deal, PayU will acquire a 43.5% stake in Mindgate, with the majority still owned by the founders of Mindgate Solutions.

This investment allows PayU to support india’s growing digital payment sector, particularly with systems like UPI, developed by the National Payment Corporation of India (NPCI).

As NPCI expands UPI both in India and globally, Mindgate will play a key role by providing real-time payment infrastructure and expertise to major banks in India.

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“As person-to-merchant (P2M) transactions increasingly dominate the payments landscape, constituting nearly 60 per cent of all UPI transactions in India, this partnership will enable banks and merchants to meet the evolving needs of consumers through enhanced payment options, higher operational efficiency, and increased revenue opportunities,” PayU said in a statement.

“Together, we will enhance the infrastructure that supports seamless financial transactions, delivering exceptional value to banks, merchants, and consumers worldwide. This investment is also consistent with our efforts to support the Indian fintech ecosystem by investing in promising founders and helping them build world-class platforms,” said Anirban Mukherjee, chief executive officer (CEO), PayU.

This is PayU's second acquisition in the financial infrastructure space, after buying Wibmo in 2019. The company received approval from the Reserve Bank of India (RBI) for a payments aggregator license. PayU had also planned to go public in India in 2024, but those plans did not happen.

About Mindgate

Founded in 2008, Mindgate handles over 8 billion transactions each month and works with major banks. With its expansion into MENA, ASEAN, Europe, and the US, its expertise will help PayU grow globally through its paytech business, Wibmo.

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