PayU Looking To Raise $300 Mn Ahead Of IPO

SUMMARY

PayU is planning to raise $250 Mn to $300 Mn ahead of its public listing. It plans to onboard new investors ahead of its IPO to diversify its shareholder base

During this this Prosus, the fintech major's parent entity has infused more than INR 1,000 Cr

This comes at a time when the Prosus-owned startup is aiming for its IPO in FY26

Prosus-owned fintech major PayU is reportedly planning to raise $250 Mn to $300 Mn (about INR 2,200 Cr to INR 2,640 Cr) ahead of its public listing.

The company is planning to onboard new investors ahead of its IPO to diversify its shareholder base, Moneycontrol reported. Besides, the fundraise will help “gauge investor demand and set a valuation benchmark” before the planned public listing.

“PayU is looking to raise approximately $250 Mn to $300 Mn to diversify its shareholder base and strengthen its market position as it gears up for its IPO. The company has recently strengthened the board to reinforce governance and is taking additional steps to support sustainable growth,” a source was quoted as saying.

However, the discussions are currently in early stages and the names of the investors who will participate in the round are not clear.

Inc42 has sent queries to PayU on the development. The story will be updated on receiving responses.

This comes a couple of months after Prosus infused INR 302 Cr in PayU to boost its credit business. Prior to that, the Dutch technology investor pumped INR 1,013 Cr in the company in April this year.

PayU’s IPO Plans

Prosus was initially aiming for PayU’s public listing in India in 2025 but later deferred it to FY26.

However, this was not the first time that the company’s IPO plans were delayed.

Back in 2023, PayU was planning to file its DRHP but postponed it to 2025. At the time, it was speculated that it was planning to raise $500 Mn via the IPO.

Founded in 2002, PayU offers payment solutions and credit solutions. It claims to handle more than 10 Mn transactions daily globally and helps merchants accept digital payments.

On the credit side, it offers buy-now-pay-later solutions on various ecommerce platforms via its LazyPay brand. It also offers unsecured loans and prepaid credit cards.

In May, the company got approval from the Reserve Bank of India (RBI) to operate as a payment aggregator (PA).

While PayU has a presence in Central and Eastern Europe, Latin America and Middle East and Africa, India is its key market.

PayU India’s adjusted EBIT loss in FY25 zoomed 38% to $44 Mn. Meanwhile, revenue grew 21% to $669 Mn.

“While revenue and margins improved, PayU India recorded a trading loss. We aim to restore its profitability,” Prosus CEO Fabricio Bloisi said in June this year.