Prosus-backed fintech firm PayU buys 43.5% stake in Mindgate Solutions

Prosus-backed fintech firm PayU on Thursday said the company acquired a 43.5 per cent stake in payments infrastructure company Mindgate Solutions for an undisclosed amount.

 

The deal will allow PayU to expand into the real-time payment processing market, including the Unified Payments Interface (UPI).

 

“As person-to-merchant (P2M) transactions increasingly dominate the payments landscape, constituting nearly 60 per cent of all UPI transactions in India, this partnership will enable banks and merchants to meet the evolving needs of consumers through enhanced payment options, higher operational efficiency, and increased revenue opportunities,” PayU said in a statement.

 

Mindgate processes over eight billion monthly transactions and provides payment solutions to banks. The company is present in regions such as the Middle East and North Africa (MENA), Southeast Asia, Europe, and the United States.

 

“Together, we will enhance the infrastructure that supports seamless financial transactions, delivering exceptional value to banks, merchants, and consumers worldwide. This investment is also consistent with our efforts to support the Indian fintech ecosystem by investing in promising founders and helping them build world-class platforms,” said Anirban Mukherjee, chief executive officer (CEO), PayU.

 

PayU has invested across 16 companies and acquired nine, according to data from market intelligence platform Tracxn. Major investments include those in supply chain financing platform Vayana and consumer lending startup ZestMoney, among others.

 

In 2024, PayU invested $5 million in a seed round in cross-border payments platform BriskPe.

 

The Mumbai-based payments firm had said it would use the funding to improve its product and service offerings, expand its team, and scale its services.