PayU eyes $6 bn valuation in India IPO next year

PayU India, a fintech and payment processing firm backed by Netherlands based Prosus, is planning to make its debut on the Indian stock market next year. The company is aiming for a valuation of $6-6.5 billion and is expected to file a draft red herring prospectus (DRHP) by the end of this year or early next year, according to sources.

The move comes as PayU India reported a significant growth in revenue, recording $400 million for the financial year that ended in March 2023, marking a 31 percent increase compared to the previous year. The company’s growth and profitability have positioned it for a potentially lucrative initial public offering (IPO), and it could seek a valuation between $4-$6 billion, although adjustments may be made based on market conditions.

To strengthen its leadership team for the IPO journey, PayU appointed Arvind Agarwal as its Chief Financial Officer (CFO) in November 2022. Agarwal’s expertise in taking Nykaa, a beauty and fashion retailer, public in November 2021, made him an ideal choice to navigate the complexities of the IPO process for PayU.

PayU’s journey towards an IPO aligns with Prosus’ strategic focus on streamlining its portfolio by divesting non-core assets and concentrating on the fintech sector. The company’s Indian entity includes subsidiaries such as the payment authenticating platform Wibmo and PayU Finance, a nonbanking financial company.