PayU, a digital payments platform, has received an extra investment of INR 303 crore (about $35.6 million) from its parent company, Prosus.
The money came through Prosus’s investment arm, MIH Payments Holdings B.V., as PayU prepares for its upcoming IPO (initial public offering).
This follows an earlier investment by Prosus, which put INR 1,013 crore into PayU earlier this year in two parts.
PayU’s board issued 4,86,88,258 new shares at ₹62.21 each to raise the mentioned amount. This was done through a rights issue, according to a filing with the Registrar of Companies (RoC).
PayU also got final approval from the Reserve Bank of India (RBI) to work as an online Payment Aggregator. This means the company can now add new merchants to its platform.
PayU was started in 2002 by Nitin Gupta, Shailaz Nag, Jose Velez, Martin Schrimpff, Arjan Bakker, and Grzegorz Brochocki. The company offers payment gateway services to online businesses using advanced technology.
In India, PayU works with over 500,000 merchants across three main areas: payments, credit, and financial technology (PayTech). It recently added 13,000 new merchants to its platform.
PayU, which is owned by Prosus, had planned to go public last year but has now delayed its IPO to the end of 2025.
Earlier this year, the company also bought a 43.5% stake in Mindgate Solutions, a payments technology company, as a strategic move.
In the financial year ending FY25, PayU’s payments business in India grew by 12%, reaching $498 million. Its total revenue increased by 21%, reaching $669 million.
According to Prosus’ annual report, the company had an adjusted EBIT margin of -7%, meaning it still reported a small loss overall.
Read more- Capital A Signs MOU with Malaysia’s KTMB to Link Travel and Logistics Services
