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Ahead of IPO, PayU receives final Payment Aggregator license

EntrackrEntrackr · 2m ago
Ahead of IPO, PayU receives final Payment Aggregator license
Medial

Ahead of IPO, PayU receives final Payment Aggregator license PayU has received final authorization from the Reserve Bank of India (RBI) to operate as an online Payment Aggregator. This allows the fintech firm to onboard new merchants onto its platform. In April 2024, PayU received in-principle approval from the RBI to operate as a payment aggregator. “As we move forward, we remain dedicated to building a resilient, compliant, inclusive, and innovation-driven institution—one that serves merchants of all sizes and contributes meaningfully to the Digital India vision of the RBI and the Government,” said a PayU spokesperson. The development comes at a time when PayU is planning for its IPO, eyeing a public listing during the second half of 2025. The company also appointed Pramod Rao as its Chief Risk Officer, who will oversee risk management, regulatory compliance, and strengthen the organization’s financial and operational risk framework. PayU has acquired a 43.5% stake in real-time payments technology firm Mindgate Solutions, enhancing its footprint in India’s real-time payments space and leveraging Mindgate’s expertise to drive digital payment innovation globally. Several other startups have secured authorization from the RBI as payment aggregators. MobiKwik’s subsidiary Zaakpay and PB Fintech’s subsidiary PB Pay received in-principle approval, and BharatPe’s Resilient Payments was granted final approval. Earlier this year, cross-border payments company Skydo received in-principle authorization from the RBI to operate as a Payment Aggregator-Cross Border (PA-CB) entity.

PayU acquires 43.5% stake in Mumbai-based Mindgate Solutions

EntrackrEntrackr · 3m ago
PayU acquires 43.5% stake in Mumbai-based Mindgate Solutions
Medial

PayU acquires 43.5% stake in Mumbai-based Mindgate Solutions PayU, the payments and fintech business of Prosus, has acquired a strategic stake in Mumbai-based real-time payments tech company Mindgate Solutions. This partnership strengthens PayU’s presence in India’s real-time payments sector while utilizing Mindgate’s expertise to advance digital payment innovations globally. As part of this deal, PayU will acquire a 43.5% stake in Mindgate, while majority ownership will remain with the company's founders, the company said in a press release. This investment in Mindgate allows PayU to contribute to India's evolving digital payment landscape, driven by instant payment systems like UPI, developed by the National Payment Corporation of India (NPCI). As NPCI expands UPI domestically and globally, Mindgate is poised to play a key role by providing real-time payment infrastructure and expertise to leading banks in India. Person-to-merchant (P2M) transactions increasingly dominate the payments landscape, constituting nearly 60% of all UPI transactions in India. This partnership will enable banks and merchants to meet the evolving needs of consumers through enhanced payment options. Mindgate processes over 8 billion transactions monthly and supports major banks. Expanding across MENA, ASEAN, Europe, and the US, its expertise will enhance PayU’s global reach through its paytech business — Wibmo. The development has come at a time when PayU is planning for its IPO. It’s eyeing a public listing during the second half of 2025. In India, PayU acquired fintech company PaySense and merged it with LazyPay in early 2020. The company was also close to acquiring fintech firm BillDesk; however, the $4.7 billion deal fell through due to the non-fulfillment of certain conditions.

Exclusive: PayU defers IPO plan to next fiscal year

EntrackrEntrackr · 9m 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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