PayU wants to raise $300 million before going public.

PayU, a payments business funded by Prosus, is reportedly looking to generate $300 million by selling off a minority stake. The company has enlisted HSBC as its financial partner for the project, which is still in its early stages, according to a Moneycontrol story. The minority share sale is intended to determine investor demand and provide a benchmark valuation for PayU's initial public offering (IPO), which is anticipated to take place in 2026. The fundraising effort precedes a plan to list on Indian stock exchanges.PayU purchased a 43.5% strategic investment in Mindgate Solutions, a company that develops real-time payment technology, in March. The business collaborates with the top banks in the nation and is among the biggest UPI technology service providers in the sector. Prosus is still a major shareholder in PayU, and it recently supported the Mindgate investment and invested $35 million in the company's credit division.

Through a gateway that accepts cards, UPI, wallets, EMIs, and QR codes, PayU India assists companies in accepting digital payments. It provides no-code features like payment linkages and invoicing to make setup easier for its half a million businesses. Additionally, the business provides value with enterprise-grade capabilities including split payments, analytics, tokenization, fraud protection, and AI-driven recommendations.In terms of lending, PayU offers loans to people and companies that are underserved by conventional banks. With an NBFC license recognized by the Reserve Bank of India, it provides "buy now, pal later" options, EMIs, and quick loans.Transaction fees from its payments division and interest or processing fees from its loans division are how PayU makes money. PayU's overall revenue increased 21% to $669 million for the fiscal year that ended in FY25, while its India payments business climbed 12% to $498 million.