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Exclusive: PayU defers IPO plan to next fiscal year

EntrackrEntrackr · 11m 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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Exclusive: Razorpay converts to public entity ahead of IPO plans

EntrackrEntrackr · 5m ago
Exclusive: Razorpay converts to public entity ahead of IPO plans
Medial

Exclusive: Razorpay converts to public entity ahead of IPO plans Fintech unicorn Razorpay has transitioned into a public limited company, moving closer to its planned initial public offering (IPO). While it has no immediate plans to go public, the Bengaluru-based firm—previously domiciled in the United States—is in the process of shifting its headquarters to India. “As part of our redomiciling to India, we’re initiating the process to become a public company well before our IPO in approximately two years, in order to align with best governance practices and build early readiness,” a company spokesperson said in response to Entrackr’s queries. Razorpay will join the likes of Paytm and MobiKwik, which have already gone public, while Pine Labs and PayU are also expected to list by the end of the ongoing fiscal year (FY26). As per media reports, the Bengaluru-based payments unicorn is targeting its IPO by 2026-27. The development comes two months after the Regional Director in Hyderabad approved the amalgamation of Razorpay Inc with Razorpay India. Razorpay provides easy and secure payment solutions tailored for local businesses. Its offerings include multi-currency transactions, real-time payments, and cost-effective cross-border solutions. In addition to India, the company has expanded its presence to Singapore and Malaysia. Razorpay has raised over $800 million across multiple funding rounds and was last valued at around $7 billion. In FY24, the company posted a revenue of Rs 2,068 crore with a profit of Rs 35 crore. It competes with players like Cashfree, which reported Rs 642 crore in revenue for the same period, and PayU, which recorded $444 million (approximately Rs 3,800 crore) in revenue during FY24.

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

EntrackrEntrackr · 6d ago
PayU plans to raise up to $300 Mn ahead of IPO: Report
Medial

Snippets 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, pay 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.

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