PayU's India unit seeks IPO within next 12 months

According to the officials at Prosus, the company is preparing for a potential listing of PayU, aiming for the second half of next calendar year. This announcement came after Prosus published its fiscal first-half results.

The Indian payments business, which is PayU’s biggest, revenues grew 15% to USD 211 million in the period, driven by growth from existing merchants, its Wibmo unit, and its omnichannel business, Prosus said in a statement.

The Indian unit of Prosus NV’s PayU financial technology firm has stated it is seeking an initial public offering within the next 12 months.

India has a large, young, and tech-savvy population that is increasingly using smartphones and the internet for services, driving demand for app-based services. Consumers in the South Asian country are switching to payment systems instead of cash-based transactions. In India, PayU competes with the likes of Tiger Global Management-backed Razorpay and Walmart Inc.’s PhonePe.

Prosus this year said it plans to sell part of PayU to Israel’s Rapyd for USD 610 million in a deal that excluded units in India, Turkey, and Indonesia.

More news from PayU

In June 2023, Romania-based Mogo partnered with PayU to streamline online loan instalment payments. Mogo customers would now be able to access the recurring payment option instantly through PayU's platform. In the same month, PayU launched, in collaboration with Visa and Yes Bank, the Business Payment Solution Provider (BPSP) programme. The programme offers flexible commercial offerings, which reduce costs for merchants and helps improve cash flow by utilising credit lines provided by their commercial card issuer bank, according to the company.

Also, it allows businesses to pay their vendors digitally, by supporting them to accept commercial card payments and automates supplier and buyer reconciliation. ‘BPSP supports the digitisation of small and medium businesses in particular, enabling them to accept digital payments easily and facilitates easy credit access,’ PayU said in a statement.