New Delhi, September 2025 — Prosus-owned fintech major PayU is preparing to raise between $250 million and $300 million ahead of its initial public offering (IPO). The planned fundraising aims to onboard new investors, diversify its shareholder base, and set a valuation benchmark before the listing.
PayU IPO Plans
PayU, founded in 2002, has grown into one of the largest digital payments and credit solution providers in emerging markets. The fintech firm operates across India, Central and Eastern Europe, Latin America, and the Middle East, processing over 10 million daily transactions globally.
The company offers payment gateway services for merchants and consumer credit products through its LazyPay brand, including buy-now-pay-later (BNPL), unsecured loans, and prepaid credit cards.
In May 2025, PayU received Reserve Bank of India (RBI) approval to function as a licensed payment aggregator, a regulatory nod that has strengthened its foothold in the competitive Indian fintech ecosystem.
Despite its growing revenue base, PayU India has faced profitability challenges. In FY25, the company’s adjusted EBIT loss widened 38% to $44 million, even as revenue rose 21% to $669 million.
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PayU Seeks $250–300 Mn Before IPO
According to reports, PayU is in early talks to raise $250–300 million (₹2,200–2,640 crore) ahead of its IPO, expected in FY26. The company is considering onboarding multiple investors to reduce dependency on its parent entity, Prosus, and diversify its shareholder structure.
Sources familiar with the matter told Moneycontrol that the fundraising will also help the fintech major test investor appetite before its listing. “PayU is looking to raise approximately $250 million to $300 million to diversify its shareholder base and strengthen its market position as it gears up for its IPO,” one source was quoted as saying.
Prosus has already made significant capital infusions in PayU this year, including ₹302 crore for its credit business and a larger ₹1,013 crore investment in April 2025.
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Industry & Market Impact of PayU’s IPO
PayU’s IPO is being closely watched as one of the most significant fintech listings from India in recent years. The move to bring in new investors ahead of the public offering could help stabilize market confidence, especially after delays in previous listing plans.
The fundraising and IPO are also expected to have ripple effects across the digital payments and credit lending sector, where players such as Razorpay, PhonePe, and Pine Labs are actively exploring capital markets.
Analysts suggest that PayU’s listing will serve as a valuation benchmark for Indian fintech companies navigating regulatory challenges while chasing profitability.
Expert Insights on PayU Fundraise and IPO
Industry experts believe the planned pre-IPO fundraise highlights a dual strategy: strengthening governance structures and ensuring diversified ownership.
“Diversification of shareholders before listing is critical for companies like PayU. It not only improves governance standards but also provides confidence to institutional investors looking at long-term fintech growth in India,” said a Mumbai-based venture capital analyst.
Prosus CEO Fabricio Bloisi had earlier acknowledged PayU India’s financial performance, noting: “While revenue and margins improved, PayU India recorded a trading loss. We aim to restore its profitability.”
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What’s Next for PayU IPO
Initially, Prosus aimed for PayU’s IPO in 2025, but it has since been deferred to FY26. This is not the first delay—PayU had considered filing its draft red herring prospectus (DRHP) in 2023, but postponed due to market conditions.
The upcoming fundraising round is likely to determine PayU’s pre-IPO valuation. Market speculation earlier suggested the company was eyeing a $500 million IPO raise, but the revised figures point toward a staggered approach: raising capital privately before entering the public markets.
With RBI approval, a growing merchant network, and strong transaction volumes, PayU is positioning itself as a key fintech player in India’s digital payments economy, even as it works toward restoring profitability ahead of its much-anticipated IPO.
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