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

Prosus-backed payments company PayU is said to be exploring a $300 million fundraise by offloading a minority stake. As per a Moneycontrol report, the firm has engaged HSBC as its banking partner for the deal, which is still at an early stage.

The fundraise comes ahead of a plan to list on Indian stock exchanges, with the minority stake sale being planned to gauge investor demand and set a valuation benchmark for PayU’s initial public offering (IPO), which is likely in 2026.

In March, PayU acquired a 43.5% strategic stake in Mindgate Solutions, a real-time payment technology firm. The company is one of the largest UPI technology service providers in the industry and works with the country's biggest banks.

Prosus remains a significant shareholder in PayU and recently infused $35 million into its credit business and backed the Mindgate investment.

PayU India helps businesses accept digital payments through a gateway that supports cards, UPI, wallets, EMIs and QR codes. It serves half a million merchants and offers no-code tools such as payment links and invoicing to simplify setup. The company also adds value through enterprise-grade features such as fraud protection, analytics, tokenisation, split payments, and AI-driven recommendations.

On the lending side, PayU provides credit to individuals and businesses underserved by traditional banks. It offers instant loans, EMIs and “buy now, pal Later” solutions under a Reserve Bank of India approved NBFC licence.

PayU generates revenue via transaction fees from its payments arm and interest or processing charges from its lending business. 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.