The investment seeks to improve Mindgate current partnerships with banks and enhance merchant payment solutions.
Strategic Investment to Enhance Real-Time Payment Capabilities
Prosus-backed fintech unicorn PayU has acquired a 43.5% strategic stake in Mindgate Solutions, a leading real-time payment technology firm, as announced on March 20. This deal marks a significant step in PayU’s expansion in India’s digital payments sector while supporting Mindgate’s global growth.
Deal Valuation and Financial Details
The transaction values Mindgate between $180 million to $250 million, depending on revenue and profit milestones. As part of the deal, PayU could pay between $80 million to $110 million for its stake in multiple tranches, according to sources familiar with the discussions.
Mindgate’s Market Position and Role in UPI Payments
Mindgate is one of the largest UPI technology service providers in India, catering to major banks and processing over 8 billion transactions monthly. The company, which has a revenue of ₹250 crore and 1,300+ employees, competes with other UPI and payment technology firms like Juspay and Sarvatra.
Mindgate’s majority ownership will remain with its founders, with PayU’s investment focused on strengthening its existing banking partnerships and expanding merchant payment solutions.
Global Expansion and Synergies with PayU
Mindgate has been expanding internationally, with a presence in MENA, ASEAN, Europe, and the US. Its collaboration with PayU’s paytech business Wibmo is expected to drive further advancements in real-time payments, benefiting banks, merchants, and consumers worldwide.
Leadership Statements
George Sam, Co-founder of Mindgate Solutions, emphasized the significance of this investment:
“This partnership marks a significant milestone in Mindgate’s global journey, combining our expertise in real-time digital payments with PayU’s market reach.”
Anirban Mukherjee, CEO of PayU, highlighted PayU’s long-term vision:
“Mindgate’s expertise in real-time payments aligns with our mission to drive digital payment innovations worldwide.”
PayU’s Growth and Profitability Goals
For FY24, PayU India reported an 11% revenue growth, reaching $444 million, driven by higher transaction volumes and value-added services. The company processed $71 billion in total payments volume, marking a 22% year-on-year increase, fueled by growth in e-commerce, financial services, and government segments.
The Mindgate acquisition is expected to bolster PayU’s efforts to become profitable before its planned IPO next fiscal year, according to sources.
Conclusion
This strategic stake in Mindgate Solutions further strengthens PayU’s footprint in India’s booming digital payments industry, enhances real-time payment capabilities, and supports both companies’ global ambitions.
