Netherlands-based fintech firm PayU, owned by Prosus (OTC:PROSF), is preparing to file for a $500 million Initial Public Offering (IPO) in India under the guidance of its recently appointed global CEO, Anirban Mukherjee. The company has chosen Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS), and Bank of America (NYSE:BAC) as advisors for the IPO, with an additional Indian investment bank to be included in the deal, according to confidential discussions held earlier this week.
The IPO could potentially value PayU between $5 billion and $7 billion, placing it in competition with other major players in the Indian digital payment market like Tiger Global-backed Razorpay and Walmart-owned PhonePe.
This move comes as PayU reports a 31% increase in its India revenue to $399 million, largely driven by enterprise and small-to-medium enterprises (SMEs), mirroring the trajectory of Softbank-backed Paytm.
Despite concerns over high valuations and a funding crunch affecting many startups, the prospect of PayU's IPO remains promising. A report from Boston Consulting Group and PhonePe anticipates that India's digital payment market will reach $10 trillion by 2026. This projection underscores the potential significance of PayU's listing, which could become one of India's most substantial fintech listings to date.
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