By Manish Singh
PayU is acquiring a controlling stake in fintech startup PaySense at a valuation of $185 million and plans to merge it with its credit business LazyPay as the nation’s largest payments processor aggressively expands its financial services offering.
The Prosus-owned payments giant said on Friday that it will pump $200 million — $65 million of which is being immediately invested — into the new enterprise in the form of equity capital over the next two years. PaySense, which employs about 240 people, has served more than 5.5 million consumers to date, a top executive said.
Prior to today’s announcement, PaySense had raised about $25.6 million from Nexus Venture Partners, and Jungle Ventures, among others. PayU became an investor in the five-year-old startup’s Series B financing round in 2018. Regulatory filings show that PaySense was valued at about $48.7 million then.
The merger will help PayU solidify its presence in the credit business and become one of the largest players, said Siddhartha Jajodia, Global Head of Credit at PayU, in an interview with TechCrunch. “It’s the largest merger of its kind in India.” he said. The combined entity is valued at $300 million, …read more
Source: Tech Crunch