PayU raises over Rs 303 Cr in fresh equity from Prosus arm
According to regulatory filings, PayU allotted 48.68 million fully paid equity shares at Rs 62.21 apiece—including a nominal value of Rs 10 and a premium of Rs 52.21 per share—on June 26.
Indian digital payments firm PayU India has raised Rs 302.88 crore in fresh equity from its Netherlands-based parent entity, MIH Payments Holdings BV, a financial holding company owned by Prosus.
According to regulatory filings, PayU allotted 48.68 million fully paid equity shares at Rs 62.21 apiece—including a nominal value of Rs 10 and a premium of Rs 52.21 per share—on June 26. The shares were issued for cash consideration and rank pari passu (equally) with the company’s existing equity shares.
MIH Payments Holdings BV is part of the broader Prosus group, a global consumer internet investor and spin-off of South African technology conglomerate Naspers.
Led by Anirban Mukherjee, PayU India delivered a mixed performance in FY25 as it navigated a challenging regulatory environment amid heightened competition.
PayU India saw its aEBIT (actual consolidated earnings before taxes) loss increase from $32 million in 2024 to $44 million in 2025. Revenue, however, increased 21.41%—from $551 million in FY24 to $669 million.
The payments business posted a 12.16% year-on-year revenue growth to $498 million from $444 million, aided by deeper penetration among existing merchants and expansion in value-added services, Prosus said.
Despite intensified UPI competition compressing margins, the business reached breakeven in the second half of the year, improving its aEBIT margin to -2% from FY24’s -8%.
In a bid to bolster its position in India’s fast-evolving payments infrastructure, PayU acquired a 70% stake in Mindgate Solutions, a real-time payments technology firm, for $68 million. The acquisition is expected to enhance PayU’s UPI capabilities and operational efficiencies.
The India credit business, operating under PayU Finance, experienced stronger momentum. Loan disbursements rose to $1.1 billion, with 23% directed to small- and medium-sized businesses.
The unit grew revenue by 60% to $171 million, but continued to post a -19% aEBIT margin due to elevated credit losses and the cost of financial leverage. The credit loss ratio rose to 5.8% in H2, prompting a tightening of underwriting standards.
Edited by Kanishk Singh