MIH Payments Holdings BV, an affiliate of the Prosus group and a subsidiary of South Africa's Naspers, invested INR 302.88 crore in PayU India, aiding the digital payment platform in strengthening its position in the competitive Indian market.
In a significant development for the Indian digital payments sector, PayU India, a leading digital payments company, has secured INR 302.88 crore in fresh equity funding. The funding round, which took place in regulatory filings, was led by MIH Payments Holdings BV, a Netherlands-based entity owned by global internet investment group Prosus.
The equity shares were issued at INR 62.21 each, with a nominal value of INR 10 and a share premium of INR 52.21. The fund infusion involved the allotment of 48.68 million fully paid equity shares.
PayU India's core digital payments business, which generated USD 498 million in revenue for the fiscal year 2025, saw a growth of 12% year-on-year. This growth was achieved despite facing margin pressures due to intense UPI competition. In a notable achievement, PayU India's payments segment reported breakeven (zero EBIT) in the second half of FY25, driven by deeper merchant penetration and expansion of value-added services.
However, the company's overall financial performance for FY25 reflects strong revenue growth alongside operational losses. The aEBIT loss for the fiscal year widened to USD 44 million, primarily due to losses in the credit vertical of PayU Finance, the credit arm of PayU India. Despite a 59.8% increase in revenue to USD 171 million, PayU Finance recorded a significant aEBIT loss, affected by higher credit costs and provisions.
Despite the challenges, PayU India continues to expand rapidly in both digital payments and credit services. The company's total payment volume (TPV) increased by around 14-17%, with key growth sectors including financial services, government, airlines, and food delivery.
The funding will be used to further scale operations in these key digital financial services, with the company aiming to restore full profitability. In a strategic move, PayU India recently acquired a 70% stake in Mindgate Solutions for USD 68 million, strengthening its position in the credit business.
PayU India's growth trajectory is aligned with the broader digital financial services landscape in India, which is expected to grow exponentially in the coming years. The company's journey reflects the potential of the digital payments sector in the country and the opportunities it presents for investors and entrepreneurs alike.
[1] PayU India's Annual Report 2025 [2] Prosus Investor Relations [3] PayU India Media Statement, 2025 [4] India Media, 2025
- The fresh equity funding of INR 302.88 crore secured by PayU India will be utilized to further scale operations in key digital financial services.
- With the acquisition of a 70% stake in Mindgate Solutions for USD 68 million, PayU India aims to strengthen its position in the credit business.
- PayU India's growth trajectory is aligned with the anticipated exponential growth of the digital financial services landscape in India.
- The company's strategic vision, backed by Prosus's investment, aims to restore full profitability and capitalize on the opportunities presented by the digital payments sector in India.
