SUMMARY
- PayU has delayed its plans to go public this financial year.
- It was considering an IPO either in the current calendar year or H2 of 2024.
- As per sources, PayU may file DRHP in early 2025.
Digital payment platform PayU has delayed its plans to go public this financial year as per sources. It was originally considering an IPO either in the current calendar year or the second half of 2024.
An anonymous source shared, “PayU has extended its IPO plan in the current fiscal year, although the company has finalized Goldman Sach as one of its lead bankers.” “The firm has chalked out plan to go public sometime after first quarter of FY26,” it further added.
PayU had been in the process of planning a public offering for several years but had to postpone it due to the Reserve Bank of India revoking its payment aggregator license due to its complex corporate structure.
The Prosus-owned company was able to regain its license in April this year and began accepting new merchants, which was prohibited between January 2023 and April 2024.
In India, PayU operates with a network of over 500,000 merchants across three sectors: payments, credit, and PayTech. It also has an annual transaction volume (TPV) of over $60 billion.
Sources indicate that PayU is in the process of preparing for its public listing. “PayU may file DRHP in early 2025,” stated another anonymous source.
In contrast to FY23, PayU’s revenue only increased by 11% to $444 million in FY24, marking losses a well. This slowdown in revenue growth and negative margins can be attributed to restrictions imposed by the RBI.
PayU has been focused on achieving profitability, which is why it also reduced its workforce by about 100 members from its credit division. Additionally, several high-level employees have left the company over the past two years.
