SUMMARY
The investment firm is reportedly working with Bank of America Corp. for the deals
Prosus may consider selling PayU’s operations gradually to different buyers while retaining its Indian business
In October last year, PayU terminated its agreement to acquire fintech startup Billdesk for $4.7 Bn citing non-fulfilment of certain conditions
Netherlands-based investment group Prosus NV, the parent company of fintech PayU, is reportedly looking at selling stake in the fintech company’s business outside India.
The investment firm is working with Bank of America Corp. as it weighs interest in PayU business outside India, Bloomberg reported. The deal could help Prosus get as much as $800 Mn.
While PayU operates in more than 50 countries across Asia, Latin America, Europe and Africa, Prosus may consider selling PayU’s operations gradually to different buyers while retaining its Indian business, the report said.
The overall value of unlisted payments and fintech assets of Prosus, including PayU, is estimated at around $4 Bn.
Prosus declined to comment on the development.
PayU’s revenue from core payments vertical surged 23% year-on-year (YoY) to $343 Mn in the first half of the financial year 2022-23 (FY23), as per Prosus’ half-yearly financial report. However, the core payments business reported a trading loss of $7 Mn during the period.
The consolidated revenue of PayU rose 33% year-on-year to $412 Mn in the first half of FY23, driven by payments growth in India and Turkey and the scaling of the fintech platform’s credit business in India.
PayU India turned profitable in FY22, reporting a net profit of INR 126 Cr. It provides payment gateway solutions to online businesses and claims to serve over 4.5 Lakh merchants in the country.
Prosus also has various other Indian startups in its portfolio like PharmEasy, Urban Company, Olx, BYJU’S, Dehaat, and Meesho.
In August 2021, Prosus announced that PayU would acquire Indian fintech startup Billdesk in a $4.7 Bn deal. However, the company terminated the agreement in October last year citing non-fulfilment of certain conditions.
Earlier this year, Prosus and its South-African parent Naspers announced that they would lay off 30% of their corporate staff globally in a cost-cutting measure in a bid to turn profitable by 2025. Prosus CEO Bob van Dijk said that the company would also seek to cut costs at more than 80 companies it has invested in, although those efforts have different timelines and scales.
Meanwhile, PayU India also laid off around 6% of its workforce, approximately 150 employees, in December 2022.
