PayU IPO Upcoming
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About PayU
Founded in 2011 by Nitin Gupta and Shailaz Nag, PayU India is a leading payment solution provider for over 500,000 businesses, enabling online and offline transactions through more than 150 payment options, including credit and debit cards, net banking, EMIs, BNPL, QR, UPI, and wallets. Originally started as Pagosonline in Colombia in 2002, PayU launched its Indian payment gateway with Ibibo to focus on e-commerce businesses. PayU is owned by Prosus’ Naspers Group.
PayU Valuation
Originally, PayU was set to go public by this year with an estimated valuation of between $5 billion and $7 billion. Despite the delay, Ervin Tu, Prosus’ president and chief investment officer, expressed hope that the listing could occur in 2025. PayU, a key player in India’s rapidly expanding digital payments market, competes with prominent firms such as Razorpay and Walmart-owned PhonePe. Recently, UBS raised PayU’s valuation from $3.7 billion to $4.2 billion, influenced by higher trading multiples among global payment peers.
Operations & Performance of PayU
In first half of the FY25, PayU India’s revenue rose by 12% to $237 million, with the total payment value increasing by 25%. The company onboarded over 4,000 merchants during this period, driven by strong demand in financial services, government payments, and e-commerce. Despite lower take rates due to UPI adoption, PayU is moving toward profitability, with EBIT margin showing improvement. The credit business saw a 91% revenue surge to $82 million, supported by higher loan issuances. The company focuses on building a robust loan portfolio amid a changing regulatory landscape.