As India’s digital payments space matures, one of its oldest players, PayU, is slowly but surely setting the stage for its long-awaited IPO. In a fresh show of confidence, parent company Prosus has infused another ₹303 crore ($35.6 million) into PayU via its investment arm, MIH Payments Holdings B.V.
This marks the third capital injection from Prosus this year, taking its total funding into the Indian fintech arm to over ₹1,316 crore in 2025 alone. According to filings accessed from the Registrar of Companies (RoC), PayU’s board approved the allotment of 4.86 crore equity shares at ₹62.21 per share on a rights issue basis.
But the capital infusion is just one part of a much larger story unfolding.
Earlier this year, PayU secured final approval from the Reserve Bank of India (RBI) to operate as an official Payment Aggregator—a milestone that now allows the company to onboard new merchants and deepen its reach into India’s vast digital economy.
Founded in 2002 by a global team including Nitin Gupta, Shailaz Nag, Jose Velez, and others, PayU has been a quiet but powerful force behind online transactions in India for over two decades. From startups to enterprise giants, the platform now serves over 500,000 merchants across payments, credit, and PayTech verticals—adding 13,000 new merchants recently.
While the company had earlier mulled a public debut in 2024, it has pushed the IPO timeline to late 2025, citing a more strategic market entry. The fresh funding and regulatory nods appear to be part of a broader realignment to prepare for that move.
Another key move this year? PayU acquired a 43.5% stake in Mindgate Solutions, a payment tech firm known for enabling UPI-based transaction infrastructure—giving it an even stronger footing in India’s real-time payments landscape.
Financially, the company’s India payments business grew 12% year-on-year to $498 million, while overall revenue rose 21% to $669 million. Though it continues to operate at an adjusted EBIT margin of -7%, Prosus’ continued backing suggests strong belief in PayU’s long-term profitability.
As fintechs in India face both opportunity and regulatory heat, PayU’s measured approach—bolstered by deep-pocketed support and a strong merchant network—could offer a masterclass in scaling sustainably.
By- Priyanka Chatterjee
