PayU India Secures ₹302 Crore Capital Infusion from Prosus to Accelerate Credit Business

PayU India, the digital‑payments and lending arm of Prosus, has received a fresh capital infusion of Rs 302 crore (approximately $35 million) from its parent, MIH Payments Holdings B.V., Inc42 reported citing the company’s filings with India’s Ministry of Corporate Affairs.

The equity issuance of 4.9 crore shares will be used to accelerate the growth of its credit business, which the company expects to break even by September this year.

Founded in 2002 and spun out of Ibibo in 2014 under the leadership of co‑founders Nitin Gupta and Shailaz Nag, PayU India operates two primary segments: payment gateways and digital financing. The payments division, which reached profitability in the second half of FY 2025, saw a 12% year‑on‑year sales increase to $498 million.

The credit vertical delivered even stronger growth, with revenue rising 60–63% to $171 million and loan disbursements totalling $1.1 billion in FY 2025, growing its loan book to $558 million by year‑end.

Despite these gains, PayU’s adjusted EBIT (aEBIT) deficit widened to $44 million in FY 2025 from $32 million in FY 2024, driven in part by higher financial leverage and elevated loss rates in its consumer‑loan portfolio.

To address this, the company has tightened underwriting criteria, shifted focus toward partnerships and SMB lending at checkout, and leveraged the RBI’s April 2024 approval to resume merchant onboarding and operate as a regulated payment aggregator, actions that added some 13,000 new merchants in FY 2025.

While an initial public offering has long been mooted, Prosus’s finance leadership recently indicated that PayU India will defer any IPO plans for at least the next 6–12 months, choosing instead to concentrate on building a robust, profitable business foundation.

The Rs 302 crore capital injection underscores Prosus’s confidence in PayU India’s trajectory and its roadmap to sustainable profitability across both payments and credit verticals.

PayU Payment Aggregator

In April, PayU received approval from the Reserve Bank of India (RBI) on Tuesday to operate as a payment aggregator, enabling the digital financial services provider to onboard new merchants following the in-principle approval.

This decision follows the RBI’s heightened scrutiny of the payments sector, requiring online payment companies to monitor merchants’ transaction‑related activities and ensure compliance with updated guidelines.

Anirban Mukherjee, CEO of PayU, stated in a social media post, “We would like to thank Reserve Bank of India (RBI) for granting PayU the in‑principle approval. We value the trust that RBI has placed in us, and we are ready to welcome new businesses onto our platform.”