Payment and fintech firm PayU has agreed to acquire a majority stake in digital credit platform PaySense, including its assets, in a deal valued at $185m.

As part of the deal, PayU’s consumer lending business LazyPay and PaySense will combine their business operations to develop a full-stack digital lending platform in India.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

PayU has also committed to invest $200m in the new venture in the form of equity capital.

Out of the total investment, $65m will be instantly invested, while the remaining amount will be invested in the next two years.

PayU credit global head Siddhartha Jajodia said: “Technology has the power to completely transform people’s access to financial services and the credit market in India is ripe for further digital disruption.

“This merger is the next step in our journey as we accelerate our vision for credit in India.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“We’re delighted to welcome Prashanth and his experienced team as we integrate this fast-growing business and build a full-stack digital lending platform aligned with PayU’s overall plan of orchestrating a broader fintech ecosystem in the region.”

Furthermore, under the deal, PaySense founder and CEO Prashanth Ranganathan will head PayU’s credit business in India as the CEO of the new entity.

He will continue to retain a stake in the merged enterprise while all the other investors and shareholders will exit.

Ranganathan said: “Providing more Indian consumers with access to credit is crucial to helping individuals grow and succeed.

“PayU is a natural partner for us as we both strive to make finance more simple, accessible and transparent. We’re excited to start bringing our personal loan product to more consumers throughout India and truly democratise credit.”