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Exclusive: PayU defers IPO plan to next fiscal year

EntrackrEntrackr ยท 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. โ€œPayU has extended its IPO plan in the current fiscal year, although the company has finalized Goldman Sach as one of its lead bankers,โ€ said one of the sources requesting anonymity. โ€œThe firm has chalked out plan to go public sometime after first quarter of FY26.โ€ 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. โ€œPayU may file DRHP in early 2025,โ€ said another source who also wished not to be named. Queries sent to PayU didnโ€™t elicit any response. We will update the story in case they do. Unlike FY23, PayUโ€™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 RBIโ€™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 ยท 2m 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 firmโ€”previously domiciled in the United Statesโ€”is in the process of shifting its headquarters to India. โ€œAs part of our redomiciling to India, weโ€™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,โ€ a company spokesperson said in response to Entrackrโ€™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.

Exclusive: Urban Company converts into public company

EntrackrEntrackr ยท 5m ago
Exclusive: Urban Company converts into public company
Medial

Urban Company is preparing for a definitive initial public offering (IPO) this year. The company has taken its first significant step toward going public by converting into a public entity. The board of OfBusiness has approved a resolution to change its status to a public company and rename it from "Urbancalp Technologies India Private Limited" to "Urbanclap Technologies India Limited," according to its regulatory filing. Urban Company reportedly aims to raise Rs 3,000 crore (approximately $350 million) through its IPO and has hired Kotak Mahindra Bank, Goldman Sachs, and Morgan Stanley as its lead managers. It is likely to file draft IPO papers by the end of March. Ahead of the IPO, Prosus is planning to increase its investment in the company. Prosus is reportedly looking to invest $30 million (Rs 250 crore) in a secondary deal, allowing Bessemer Venture Partners to make a partial exit. The Abhiraj Bhal-led company concluded its last ESOP liquidity program in December 2021 at a valuation of $2.8 billion. Last year, it also completed a new buyback at a valuation of approximately $2.2 billion to $2.5 billion. According to startup data intelligence platform TheKredible, Urban Company has raised Rs 3,457.16 crore (more than $450 million) from investors including Tiger Global, Accel, Elevation Capital, and Dharana, among others. Urban Company operates in more than 60 cities across India, the UAE, Singapore, and Saudi Arabia. The company has a partner network of over 55,000 hand-picked service professionals. For the fiscal year ending in March 2024, Urban Company's revenue from operations grew 30% year-on-year to Rs 827 crore from Rs 637 crore in FY23. The Gurugram-based startup also reported a 70% decline in losses to Rs 93 crore in the last fiscal year.

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