PayU, the fintech division of Prosus, has taken a 43.5% stake in Mindgate Solutions. The strategic investment is designed to enhance PayU’s dominance in India’s fast-growing real-time payments market, including the Unified Payments Interface (UPI). Although the terms of the deal are not disclosed, the valuation of Mindgate is said to be around $200 million to $250 million.
Mindgate Solutions is a Mumbai-based company, established in 2008, is engaged in offering real-time payment technology and infrastructure to banks, merchants, governments, and corporations.
The company handles more than 8 billion transactions every month and is at the center of UPI operations, making it a bedrock of India’s digital payments ecosystem. UPI transactions are becoming increasingly dominated by person-to-merchant (P2M) payments, representing close to 60% of all UPI activity. With this alliance, PayU and Mindgate will address the changing needs of consumers through improved payment solutions and provide better operational efficiency for banks and merchants.
However, the founders of Mindgate Solutions will continue to hold the majority stake in the company to ensure continuity in operations and strategy. The company has created a presence not only in India but across the globe, with offices across regions including the Middle East and North Africa (MENA), Southeast Asia, Europe, and the United States. This international presence adds to PayU‘s current global payment technology company, Wibmo, and is likely to speed up real-time payment solutions adoption globally.
PayU CEO Anirban Mukherjee highlighted that this investment will enhance PayU’s vision to globalize Indian payment technologies and empower the country’s fintech space. Further, he said, “Collectively, we will advance infrastructure that enables instant financial transactions with a superior value proposition for banks, merchants, and consumers around the world.“
The deal comes up at the right time for PayU as it gears up for an IPO that is scheduled to take place later in 2025. The acquisition is also another milestone in PayU’s investment strategy, as the company has already invested in or acquired various fintech companies like Vayana Network and ZestMoney.
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Mindgate Solutions’s co-founders, George Sam and Guhan Muthuswamy, welcomed the partnership with PayU with excitement. They highlighted that this partnership aligns with their efforts and promises future growth in the fintech system. They further said, “Our experience in real-time digital payments with PayU’s large market footprint will allow us to offer groundbreaking solutions across the world.“
Through this acquisition, the two firms seek to reimagine digital payment infrastructure through the use of their combined experience and market presence. This will serve the financial institutions and consumers across the globe.
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