PayU India Secures Additional ₹303 Crore Investment from Prosus

PayU, a prominent digital payments platform, has secured an additional ₹303 crore (approximately $35.6 million) from its parent firm, Prosus, through its investment entity MIH Payments Holdings B.V. This latest infusion follows 2 earlier rounds this year, totalling ₹1,013 crore. 

The company’s board approved the allotment of 4,86,88,258 equity shares at ₹62.21 each on a rights issue basis to raise the funds, according to documents filed with the Registrar of Companies (RoC).

Regulatory Milestone and Expansion Strategy

PayU recently obtained final authorisation from the Reserve Bank of India (RBI) to operate as an online Payment Aggregator. This critical approval allows the company to begin onboarding new merchants. 

Founded in 2002 by Nitin Gupta and a team of co-founders, PayU has steadily grown its presence in India’s fintech space, currently serving more than 500,000 merchants across payments, credit, and PayTech segments, with an additional 13,000 merchants added recently.

Business Growth and Strategic Moves

Despite initially planning to list in 2024, PayU has postponed its IPO to late 2025. In a strategic move earlier this year, it acquired a 43.5% stake in payment solutions provider Mindgate Solutions. 

Financially, the India payments division posted a 12% year-on-year growth, reaching $498 million in revenue for FY25. Overall revenue climbed 21% to $669 million, although the company reported an adjusted EBIT margin of -7%, as stated in Prosus’ annual financial report.

Read More: India’s Digital Payments Surge in FY25: UPI Leads the Charge!

Conclusion 

The latest capital infusion, regulatory approval, and strategic acquisitions position PayU India for sustained growth and a stronger IPO debut in 2025.

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