Ahead of IPO, PayU Aims to Raise Upto $300 Million: Report

As per the Moneycontrol report, PayU, a Prosus-backed payments company, is preparing for a major fundraising exercise as it looks to expand its presence in India’s fast-evolving digital payments market. The company is reportedly exploring a $300 million fundraise through a minority stake sale, appointing HSBC as its banking partner. 

The move is designed to assess investor interest and establish a valuation benchmark before PayU proceeds with its proposed listing on Indian stock exchanges, expected in 2026.

Fundraise and IPO Roadmap 

As per the news reports, the transaction is still at an early stage, with discussions ongoing on valuation and structure. The proposed stake sale will help set the tone for the company’s market debut by testing investor appetite. 

While the IPO is still some time away, PayU intends to use this fundraising exercise as a stepping stone toward its anticipated 2026 listing.

Expansion Through Acquisitions and Shareholder Backing 

Earlier this year, PayU acquired a 43.5% strategic stake in Mindgate Solutions, a leading provider of real-time payment technology that works with some of India’s largest banks. The deal has strengthened PayU’s role in the UPI payments ecosystem, one of the fastest-growing segments in the country. 

Prosus, which remains the company’s largest shareholder, has also demonstrated its continued support by injecting $35 million into PayU’s credit arm and backing the Mindgate acquisition. These moves underline the company’s long-term growth ambitions in India.

Business Operations, Offerings and Financial Performance 

PayU’s India business has built a comprehensive payments ecosystem that supports cards, UPI, wallets, EMIs, and QR codes. It currently serves over half a million merchants and provides simplified no-code solutions like payment links and invoicing. Beyond this, the platform offers enterprise-grade features such as fraud prevention, analytics, tokenisation, split payments, and AI-powered recommendations. On the lending side, PayU operates as an RBI-licensed NBFC, providing instant loans, EMIs, and buy-now-pay-later products aimed at individuals and businesses underserved by traditional banks.

The payments arm generated revenue of $498 million in FY25, recording a 12% year-on-year increase. At the consolidated level, PayU’s overall revenue climbed 21% to $669 million, reflecting healthy demand across its payments and credit businesses.

Read More: PhonePe Plans Confidential IPO Filing by September-End!

Conclusion

PayU’s fundraising move signals its intent to strengthen financial flexibility ahead of its planned IPO in 2026. With support from Prosus, new acquisitions like Mindgate, and steady growth in both payments and lending, the company is positioning itself to capture a larger share of India’s digital financial services market.

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