PayU India secures $35.1m to boost digital payments push

By Vriti Gothi

PayU India, has raised an equity funding round of $35.1 million to strengthen its strategic growth within India’s dynamic payments ecosystem.

The investment comes from its parent company, MIH Payments Holdings BV, a Netherlands-based entity under global consumer internet group Prosus.

The capital infusion, formalised through the issuance of 48.68 million fully paid equity shares at INR 62.21 per share, underscores Prosus’ continued confidence in PayU’s mission to advance India’s digital payments landscape with secure, real-time, and inclusive financial solutions. The newly allotted shares carry equal rights and privileges as the existing equity.

This milestone reinforces PayU’s commitment to building a future-ready payments infrastructure that drives financial inclusion for millions of businesses and consumers across India. Under the leadership of Anirban Mukherjee, PayU India recorded a robust 21% year-on-year revenue growth in FY25, reaching $669 million compared to  $551 million the previous year. Its core payments business contributed  $498 million, reflecting 12% growth driven by deeper merchant engagement and an expanding portfolio of value-added services.

Despite margin pressures amid intensifying UPI competition, PayU’s core payments operations achieved breakeven in the second half of FY25, supported by a strengthened focus on operational efficiency and product innovation. The company also reported an improved EBIT margin, moving closer to sustainable profitability.

In a strategic move to enhance its real-time payment capabilities and fortify its market leadership, PayU recently acquired a 70% stake in Mindgate Solutions for $68 million. This acquisition complements its vision to offer cutting-edge, scalable, and secure payment solutions aligned with India’s rapid shift towards instant, seamless transactions.

Alongside its payments business, PayU’s credit arm, PayU Finance, has made significant strides in addressing the credit needs of India’s underserved segments, disbursing over  $1.1 billion in loans with a particular focus on small and medium enterprises. In FY25, the credit division achieved 60% year-on-year revenue growth to $171 million, demonstrating its growing role in supporting the broader digital lending ecosystem, despite ongoing challenges related to credit losses and funding costs.

Looking ahead, PayU India remains committed to driving digital transformation by expanding its merchant network, deepening partnerships, and investing in advanced payment technologies that align with the evolving needs of India’s digitally connected economy.

As India’s digital payments industry continues its rapid evolution, PayU India’s renewed financial backing signals a strong commitment to shaping a more inclusive, efficient, and resilient financial ecosystem for the future.