PayU India raises $35m from Prosus for credit business

PayU India, the Prosus-owned fintech platform, has secured ₹302 crore ($35 million) in fresh funding from its parent company Prosus Group to boost its credit business. According to regulatory filings, #PayU India issued 4.9 crore equity shares to MIH Payments Holdings B.V., a Prosus investment arm. A PayU India spokesperson confirmed that the funds will fuel the growth of its credit vertical, which is targeted to break even by September 2025, reflecting Prosus’ confidence in PayU's path to profitability. This funding follows an earlier ₹1,013 crore infusion via rights issue, showing consistent backing from Prosus. Founded in 2002, PayU India operates in two segments: Payments processing, which broke even in the second half of FY25 with revenue growing 12% to $498 million. Digital lending, offering personal loans and SMB loans via its NBFC, PayU Finance. The lending vertical’s revenue surged 60-63% to $171 million in FY25, with $1.1 billion in loan disbursements, though it remains loss-making. To improve profitability, PayU has: Tightened underwriting standards Shifted focus to SMB lending and checkout financing Scaled its merchant base by adding 13,000 new merchants post RBI’s regulatory clearance in 2024. Though PayU’s IPO remains postponed, the company is focusing on strengthening its #financials with plans to scale its #fintech ecosystem across merchants, consumers, and banks. Team PayU Anirban Mukherjee | Arun Goyal| Vineet Sethi | Manas Mishra | Vishesh Jhol | Avinash Dubey | Arvind Agarwal| Sudheer Singh | Vishal Singh| #fintech #FintechIPO #startupUpdates #fundingUpdates #fintechStartups #startupro