PayU has received final authorisation from the Reserve Bank of India (RBI) to operate as an online Payment Aggregator, marking a significant regulatory milestone for the company as it prepares for its much-anticipated initial public offering in the second half of 2025. The RBI’s approval not only cements PayU’s position among India’s top fintech players but also allows the company to resume onboarding new merchants, a crucial move after a prolonged period of regulatory scrutiny and a 15-month embargo on new client acquisitions.
The journey to this final license began in April 2024, when PayU received in-principle approval from the RBI. Since then, the company has worked to align its operations with the central bank’s stringent compliance requirements. In a statement, a PayU spokesperson emphasised the company’s commitment to building a resilient, compliant, and innovation-driven institution, highlighting its role in supporting merchants of all sizes and contributing to the broader Digital India vision championed by the RBI and the government.
This regulatory green light comes at a pivotal time for PayU. The company is actively gearing up for a public listing, aiming to tap into the Indian capital markets in the latter half of 2025. Prosus, the Dutch investment group that owns PayU, has reiterated its focus on crystallising value from its Indian portfolio. PayU is positioned as a flagship IPO candidate among several other high-growth Indian tech companies. The company has already raised significant capital from its parent via a rights issue. It has been strengthening its leadership team, most recently appointing Pramod Rao as Chief Risk Officer to oversee risk management and regulatory compliance frameworks.
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PayU’s strategic ambitions extend beyond payments aggregation. The company recently acquired a 43.5% stake in Mindgate Solutions, a leading real-time payments technology firm. This partnership is expected to bolster PayU’s presence in India’s fast-growing real-time payments sector and leverage Mindgate’s technological expertise for global digital payment innovation. Meanwhile, PayU continues to report robust financial performance, with revenues rising and merchant onboarding resuming after the regulatory pause.
The RBI’s recent wave of approvals has seen several fintech startups, including MobiKwik’s Zaakpay and BharatPe’s Resilient Payments, secure similar licenses, reflecting the regulator’s push to formalize and expand the digital payments ecosystem. PayU’s final approval not only restores its ability to grow its merchant base but also enhances its credibility as it heads toward a public listing, signaling renewed momentum for the company and the broader Indian fintech sector.
