PayU buys PaySense at a valuation of $185 million
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Digital payments gateway provider PayU on Friday said it will acquire a controlling stake in Nexus Venture Partners-backed consumer lending platform PaySense at a valuation of $185 million. As a part of the deal, PaySense will be merged with PayU’s consumer lending business LazyPay.
The merger will help PayU build a full-stack digital lending platform in the country, it said in a statement. The unified entity will enable third parties such as banks, non-banking financial companies (NBFCs), and alternate lenders to co-lend and grow assets, and will also enable borrowers to access credit when and where they need it in a digital and seamless way, PayU said.
PayU’s insights into the purchase behaviour of consumers, LazyPay’s experience in driving customer acquisition and engagement combined with PaySense’s strong analytics, tech and risk management capabilities will enable the combined entity to serve more of the new-to-credit Indian population, the company said.
Additionally, PayU, the payments and fintech business of European consumer Internet group Prosus, will inject a total of up to $200 million in the new enterprise in the form of equity capital, it said. Of the total, $65 million will be immediately invested, while the balance will be infused over the next two years to grow the loan book.
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“This merger is the next step in our journey as we accelerate our vision for credit in India,” said Siddhartha Jajodia, global head of credit, PayU.
As a part of the deal, PaySense CEO Prashanth Ranganathan will lead PayU’s credit business in India as CEO of the new enterprise. He will continue to retain a stake in the merged enterprise, while all the other investors and shareholders will exit, the company added.
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