Market Overview
The Indian fintech market is emerging as a key pillar for Prosus’ investment business. The Dutch investor’s decision to list its wholly-owned fintech firm, PayU, in 2025 reflects the growing importance of the Indian market.
Background on PayU and Prosus
PayU, a payment and lending firm, recently emerged from a 15-month regulatory ban on new merchant acquisitions and received approval to operate as a payment aggregator in April. The company competes with Razorpay and Walmart-owned PhonePe in India’s fast-growing digital payments market.
Prosus, controlled by Naspers, is an investor in several late-stage Indian startups, including social commerce company Meesho and home services provider Urban Company. Its chief executive, Fabricio Bloisi, said more portfolio companies could go public within 18 months.
Listing Plans for PayU
Initially, PayU had planned to list this year at a valuation of between $5 billion and $7 billion. However, with the market already in 2024, Prosus’ president and chief investment officer, Ervin Tu, expressed hope that the listing could be a 2025 event.
"We’re late into 2024 already, but we hope that it could be a 2025 event," said Tu on a call with journalists.
Valuation of PayU
UBS recently ascribed a valuation of $4.2 billion to PayU, up from $3.7 billion, driven by higher trading multiples among global payment peers.
Prosus’ Investment Strategy in India
Prosus has been actively investing in Indian startups, and its chief executive, Fabricio Bloisi, sees the country as a key market for the company’s investment business.
"We’re excited about the opportunities that India offers," said Bloisi. "We believe that we can create significant value by investing in Indian startups."
Timeline for Listings
Bloisi also hinted that more portfolio companies could go public within 18 months.
Market Impact
The listing of PayU and other Prosus-backed startups is expected to have a positive impact on the Indian fintech market. The country’s digital payments market is growing rapidly, driven by increasing internet penetration and government initiatives to promote digital transactions.
Conclusion
Prosus’ decision to list PayU in 2025 reflects its confidence in the Indian fintech market. With the company’s strong track record of investing in successful startups, the listing of PayU is expected to be a significant event for the Indian fintech ecosystem.
About Prosus and PayU
- Prosus: A Dutch investor controlled by Naspers, with a focus on investing in late-stage Indian startups.
- PayU: A payment and lending firm wholly owned by Prosus, competing with Razorpay and Walmart-owned PhonePe in India’s digital payments market.
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