PayU Increases Stake In Mindgate To 70%

SUMMARY

The remaining 30% stake in the digital payments infrastructure company is held by its cofounders George Sam and Guhan Muthusamy, who will remain at the helm

PayU CEO Anirban Mukherjee told ET that the company intends to propel Mindgate towards building and strengthening credit products on UPI

Without disclosing exact figures, Mukherjee noted that Mindgate’s revenue grew 40% and EBITDA 2X in FY25 from FY24. Mindgate posted a net profit of INR 23 Cr in FY24 on a revenue of INR 260 Cr.

Months after it acquired a 43% stake in Mindgate Solutions, digital payments major PayU has bought an additional 27% stake in the company. With this, PayU now owns a majority 70% stake in Mindgate.

The deal valued Mindgate at around $300 Mn, ET reported. The remaining 30% stake in the digital payments infrastructure company is held by its cofounders George Sam and Guhan Muthusamy, who will remain at the helm.

PayU CEO Anirban Mukherjee told ET that the company intends to propel Mindgate towards building and strengthening credit products on UPI.

Without disclosing exact figures, he noted that Mindgate’s transaction volume grew 50%, revenue 40%, and EBITDA 2X in FY25 compared to FY24. As per Tofler, Mindgate posted a net profit of INR 23 Cr in FY24 on a revenue of INR 260 Cr.

Founded in 2008, Mindgate provides infrastructure for real time payments, including UPI. It claims to process over 8 Bn transactions monthly and operates across MENA, ASEAN, Europe, and the US, besides India.

Meanwhile, PayU, launched in 2002 by Nitin Gupta, Shailaz Nag, Jose Velez, Martin Schrimpff, Arjan Bakker, and Grzegorz Brochocki, is owned by Prosus’ Naspers Group. Its Indian arm, PayU India, was established in 2011 by Gupta and Nag, and today provides payment and financial services not just in India but also across Latin America, Southeast Asia, Central and Eastern Europe, and Africa.

The acquisition comes at a time when PayU is flush with funds raised from its parent Prosus. The Dutch investment firm has infused INR 1,315 Cr in PayU India so far this year.

On the financial front, PayU India narrowed its net loss by 42% to INR 248.1 Cr in FY25 from INR 429.5 Cr a year ago, aided by strong growth and tax credits. Its operating revenue grew 23% to INR 5,563 Cr from INR 4,527.9 Cr in FY24.

The bulk of its revenue came from payment gateway commissions charged to merchants, which rose 16% YoY to INR 3,868.2 Cr. For the credit business, interest income surged 90% YoY to INR 1,042.1 Cr in FY25.