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PayU to onboard new merchants as it gets PA license from RBI

EntrackrEntrackr · 1y ago
PayU to onboard new merchants as it gets PA license from RBI
Medial

PayU has received in-principle approval from The Reserve Bank of India (RBI) to operate as a payment aggregator. The nod will also allow the fintech firm to onboard new merchants on its platform. Back in January 2023, the apex banking body (RBI) had asked PayU to reapply for the license and consequently, the Prosus-controlled firm had to halt onboarding new customers. As per reports, the fintech firm’s complex corporate structure was one reason behind the rejection. RBI appears to have become hyper-active in the last few years as it has been hammering several segments such as PA-PG, peer-to-peer lending, buy now pay later (BNPL), abuse of credit cards and structure of non-banking financial corporations (NBFCs). PayU is the latest firm to get RBI’s nod along with a clutch of fintech firms including Razorpay, Cashfree, Open, EnKash, Juspay, Infibeam et al. As per an ET report, Cred also received payment aggregator license but the official confirmation is awaited from both sides (RBI and Cred). PayU is one of the fintech firms along with MobiKwik, Pine Labs, and Navi among others, which have been eyeing initial public offerings. In India, PayU has a base of over 5,00,000 merchants across three business sectors – payments, credit, and PayTech. It also claims to generate over $60 billion in annualised volumes (read as total transaction volume or TPVs). PayU’s Indian entity reported more than 30% growth in its revenue to $400 million (Rs 3,300 crore) for the financial year ended in March 2023. Even in the current fiscal, the firm maintained the show with $211 million (Rs 1,700 crore) in revenue from Indian operations.

Exclusive: PayU defers IPO plan to next fiscal year

EntrackrEntrackr · 8m ago
Exclusive: PayU defers IPO plan to next fiscal year
Medial

Digital payments platform PayU has postponed its public listing plan in this fiscal year, two sources aware of the development told Entrackr. The Prosus-owned company was earlier contemplating its initial public offering in the ongoing calendar year or H2 2024. “PayU has extended its IPO plan in the current fiscal year, although the company has finalized Goldman Sach as one of its lead bankers,” said one of the sources requesting anonymity. “The firm has chalked out plan to go public sometime after first quarter of FY26.” PayU has been planning a public listing for the past couple of years but it deferred the plan as the Reserve Bank of India returned its payment aggregator license due to its complex corporate structure. However, the firm regained the payment aggregator license in April this year and started onboarding new merchants which was banned between January 2023 and April 2024. In India, PayU has a base of over 500,000 merchants across three business sectors: payments, credit, and PayTech. It also claims to generate over $60 billion in annualized transaction volume (TPV). As per sources, the company has been busy in readying itself for the public listing. “PayU may file DRHP in early 2025,” said another source who also wished not to be named. Queries sent to PayU didn’t elicit any response. We will update the story in case they do. Unlike FY23, PayU’s revenue grew only 11% to $444 million in the fiscal year ending March 2024 and also slipped into losses. The slow revenue growth and negative margin were the result of RBI’s restriction. PayU has been eyeing profitability and this is why it also laid off around 100 employees from its credit team, as per The Head And Tale report. Several senior employees also left the company in the past two years.

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