PayU India receives additional Rs 303 Cr from Prosus

Digital payments platform PayU has received an additional investment of Rs 303 crore (approximately $35.6 million) from its parent company, Prosus, through its investment arm, MIH Payments Holdings B.V., as it gears up for its initial public offering (IPO).

This comes after Prosus infused Rs 1,013 crore into PayU earlier this year in two tranches.

The PayU’s board allotted 4,86,88,258 equity shares at an issue price of Rs 62.21 per share on a right issue basis to receive the aforementioned amount, its regulatory filing accessed from the Registrar of Companies (RoC) shows.

PayU has recently secured final approval from the Reserve Bank of India (RBI) to operate as an online Payment Aggregator. This authorization enables the fintech company to onboard new merchants onto its platform.

Founded in 2002 by Nitin Gupta, Shailaz Nag, Jose Velez, Martin Schrimpff, Arjan Bakker, and Grzegorz Brochocki, PayU provides payment gateway solutions to online businesses through its advanced technology. In India, it serves over 500,000 merchants across three key segments: payments, credit, and PayTech, while adding 13,000 new merchants.

The Prosus-owned company, which had initially planned to go public last year, has deferred its IPO plans to the end of 2025. Earlier this year, PayU has also acquired a 43.5% strategic stake in payments tech company Mindgate Solutions.

For the fiscal year ended FY25, PayU’s India payments business grew 12% to $498 million, while its overall revenue rose 21% to $669 million. The company reported an overall adjusted EBIT margin of -7%, according to Prosus’ annual report for FY25.