Fintech startup PayU India has received fresh funding of ₹302 crore ($35 million) from its parent company, Prosus Group. According to the regulatory filings, PayU India issued 4.9 crore new shares to MIH Payments Holdings B.V., which is Prosus’s investment arm.
This shows Prosus’s trust in PayU’s plan to make its lending business profitable by September 2025.
Earlier too, PayU secured ₹1,013 crore from Prosus through a rights issue, showing steady support from the parent company.
Founded in 2002, PayU India is one of India’s oldest fintech firms. It works in two main areas—digital payments and digital lending.
Their payments business has already turned profitable, growing 12% to $498 million in FY25.
The lending business is still loss-making but growing fast. In FY25, lending revenue rose by about 60–63% to $171 million, with loans worth $1.1 billion given to individuals and small businesses through PayU Finance (its NBFC).
To achieve profits, PayU is now focusing more on SMB loans and checkout financing and has tightened loan approval rules.
Recently, PayU also added 13,000 new merchants after RBI gave its final approval in 2024. With this new funding, PayU aims to make its credit business profitable and strengthen its position in India’s growing fintech sector.
PayU aims to power India’s digital economy by making payments smooth and credit accessible for all.
