Prosus-backed fintech giant PayU is reportedly exploring a $300 million fundraise through the sale of a minority stake, with HSBC engaged as the banking partner. The move comes as part of its strategic preparations for an Indian stock market listing in 2026.
According to early discussions, the minority stake sale will help gauge investor appetite and set a benchmark valuation ahead of the company’s much-anticipated IPO.
Scaling With Strong Momentum
PayU has emerged as one of India’s most significant players in the digital payments ecosystem. The company serves over 500,000 merchants and enables businesses to accept payments through UPI, cards, wallets, QR codes, and EMIs. It also simplifies adoption with no-code tools such as payment links and invoicing, while providing enterprise-grade solutions like fraud protection, split settlements, tokenisation, and AI-powered insights.
In March 2025, PayU deepened its ecosystem play by acquiring a 43.5% stake in Mindgate Solutions, a real-time payments technology provider that powers some of India’s largest banks. Prosus, its largest backer, also infused $35 million into PayU’s credit business earlier this year.
Growth Across Payments & Credit
On the lending side, PayU operates under an RBI-approved NBFC licence, offering instant loans, EMIs, and “buy now, pay later” solutions. For FY25, its India payments revenue rose 12% to $498 million, while overall revenue surged 21% to $669 million, underscoring robust business momentum.
Final Take
With a growing footprint in both payments and credit, PayU’s $300 million fundraise is more than just a capital move—it signals the company’s readiness to enter public markets as a benchmark fintech leader.
Stay tuned with StartupByDoc for the latest updates on PayU’s IPO journey and the future of India’s digital payments revolution.