PayU Picks Up 43.5% Stake In Mindgate To Bolster Presence In Digital Payments

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SUMMARY

PayU has acquired a 43.5% stake in payments infrastructure startup Mindgate Solutions to expand its presence in the real-time payments space in India

However, as per the deal, Mindgate’s majority ownership will remain with its founders, including Guhan Muthuswamy and George Sam

With this acquisition, PayU seeks to leverage Mindgate’s payment solutions for banks, government institutions, merchants and corporates to sharpen its focus on real-time payments

Prosus-backed payment solutions major PayU today said it has acquired a 43.5% stake in payments infrastructure startup Mindgate Solutions to expand its presence in the real-time payments space in India.

However, as per the deal, Mindgate’s majority ownership will remain with its founders, including Guhan Muthuswamy and George Sam, PayU said in a statement.

With this acquisition, PayU seeks to leverage Mindgate’s payment solutions for banks, government institutions, merchants and corporates to sharpen its focus on real-time payments.

PayU CEO Anirban Mukherjee said that the investment aligns with the company’s goal to scale up Indian payment technologies globally.

“…Mindgate’s expertise in real-time payments complements our mission to drive the next generation of digital payment innovations. Together, we will enhance the infrastructure that supports seamless financial transactions, delivering exceptional value to banks, merchants, and consumers worldwide…,” Mukherjee said.

PayU, which was founded by Nitin Gupta, Shailaz Nag Jose Velez, Martin Schrimpff, Arjan Bakker, and Grzegorz Brochocki in 2002, is owned by Prosus’ Nasper Group. Its Indian subsidiary, PayU India, was launched in 2011, with Nitin Gupta and Shailaz Nag as its cofounders.

Besides India, it provides payment and financial services across Latin America, Southeast Asia, Central and Eastern Europe and Africa.

Founded in 2008, Mindgate provides infrastructure for real-time payments, including the Unified Payments Interface (UPI). The company claims that currently it processes over 8 Bn transactions monthly and operates in regions, including MENA, ASEAN, Europe and the US.

Recently, PayU’s chief investment and transformation officer Vijay Agicha resigned from his position. This marks the end of Agicha’s seven-year stint with the payments solutions major since 2017.

Notably, the company has been focusing on bringing up its top line in the run up to its IPO plans. In November 2024, Prosus said that it is eyeing a listing for PayU in India this year. Earlier in October, it was reported that PayU finalised Goldman Sachs as one of the lead bankers to helm the public issue.

PayU India’s revenue soared 12% to $237 Mn in the first half of the financial year ending March 2025 (H1 FY25). In the Prosus’ H1 FY25 report, PayU claims to have onboarded over 4,000 merchants in the period. In the same period, the company’s total payment value (TPV) rose by 25%.