Team Startupcity

• PayU plans to raise $300 million via minority stake sale ahead of its anticipated 2026 IPO.
• The company serves over 500,000 merchants and offers comprehensive digital payments and credit solutions.
• FY25 revenue grew 21% to $669 million, with payments business up 12%, reflecting strong growth momentum.

Prosus-backed payments company PayU is reportedly considering raising up to $300 million by selling a minority stake, according to a report  Moneycontrol. The firm has appointed HSBC as its banking partner for the deal, which is still at an early stage of planning.

The proposed minority stake sale comes as part of preparations for listing on Indian stock exchanges, with the aim of gauging investor demand and establishing a valuation benchmark ahead of PayU’s expected initial public offering (IPO) in 2026.

Earlier in March, PayU acquired a 43.5% strategic stake in Mindgate Solutions, a company specializing in real-time payment technology. PayU is recognized as one of the largest UPI technology service providers in India and collaborates with the country’s leading banks.

Also Read- Indian Startups, Fujitsu, and Singapore Drive New AI Healthcare Moves

Prosus continues to be a significant shareholder in PayU, having recently infused $35 million into its credit business, alongside supporting the Mindgate investment.

PayU India enables businesses to accept digital payments through a gateway that supports cards, UPI, wallets, EMIs, and QR codes. The company serves half a million merchants and provides no-code tools such as payment links and invoicing to simplify onboarding. Additionally, it offers enterprise-grade solutions including fraud protection, analytics, tokenization, split payments, and AI-driven recommendations.

On the lending front, PayU provides credit solutions to individuals and businesses that are underserved by traditional banks. Its offerings include instant loans, EMIs, and “Buy Now, Pay Later” solutions, all under a Reserve Bank of India-approved NBFC license.

PayU generates revenue from transaction fees in its payments business and interest or processing charges from its lending operations. For the fiscal year ended FY25, the India payments business grew 12% to $498 million, while overall revenue increased 21% to $669 million, reflecting strong growth across both payments and lending segments.