Prosus-Backed PayU Looking To File DRHP For $500 Mn India IPO In February

Nearly 15-20 Unicorns Likely To Go Public In Next Two Years: Kotak’s Jayasankar

SUMMARY

PayU India plans to list on the exchanges by the end of 2024 and is likely to be valued at $5 Bn-$7 Bn for the IPO

PayU has chosen Goldman Sachs, Morgan Stanley, and Bank of America as advisors for the IPO

Earlier this year, Prosus sold PayU’s Global Payments Organisation to Israel’s Rapyd for $610 Mn, shifting focus to operations in India, Southeast Asia, and Turkey

Prosus-backed fintech giant PayU India intends to file its draft red herring prospectus (DRHP) with markets regulator SEBI in February for an initial public offering (IPO) of at least $500 Mn.

The company plans to list on the exchanges by the end of 2024, Reuters reported, adding that it has appointed Goldman Sachs, Morgan Stanley, and Bank of America as the advisors for the IPO.

Additionally, the company intends to appoint at least one Indian investment bank for the transaction.

The IPO will value the company between $5 Bn-$7 Bn, the report said.

PayU claims to currently serve over 4,50,000 merchants, over 70 large banks via its paytech platform Wibmo, and more than 2 Mn customers with credit facilities in India.

The report comes months after Prosus sold PayU’s Global Payments Organisation (GPO) to Israel’s Rapyd for $610 Mn, shifting focus to operations in India, Southeast Asia, and Turkey.

Recently, Aakash Moondhra, the global CFO of the Prosus-owned fintech company, resigned from the payments firm. On the other hand, the CEO of PayU India, Anirban Mukherjee, was recently elevated to the position of CEO at PayU.

PayU India turned profitable in FY22, reporting a net profit of INR 126 Cr. Its total revenue rose 31% year-on-year (YoY) to $399 Mn in FY23.

PayU India enables businesses to collect online and offline payments via more than 150 payment modes, including debit cards, credit cards, net banking, BNPL, QR, UPI, EMIs, and wallets. It competes with the likes of Razorpay and Cashfree in India.

It’s important to note that in response to the Reserve Bank of India’s (RBI) directive, which prohibited the use of credit lines with non-bank prepaid payment instruments (PPI), PayU had to discontinue its digital banking offering, LazyCard, during FY23.

As per a report from Inc42, the potential market size for fintech in India is anticipated to reach $2.1 Tn by 2030. This growth is projected to occur at a compound annual growth rate (CAGR) of 18% starting from 2022.