Global fintech giant PayU, the payments arm of Prosus, has acquired a 43.5% stake in Mumbai-based Mindgate Solutions, a leading provider of real-time payment technology. This strategic move will help PayU enhance its position in India’s booming digital payments ecosystem while leveraging Mindgate’s expertise for global expansion.
Expanding PayU’s Footprint in Real-Time Payments
The investment will allow PayU to tap into India’s rapidly growing digital payment sector, particularly in instant payment solutions like Unified Payments Interface (UPI), developed by the National Payments Corporation of India (NPCI). The deal ensures that Mindgate’s founders retain majority ownership, maintaining their leadership in the company’s operations.
Mindgate plays a crucial role in powering real-time payment infrastructure, supporting major banks in India. With NPCI expanding UPI both domestically and internationally, Mindgate is set to contribute significantly to the next phase of digital payment evolution.
How This Partnership Benefits the Fintech Sector
With Person-to-Merchant (P2M) transactions accounting for nearly 60% of all UPI payments in India, this partnership will equip banks and merchants with advanced digital payment solutions. Mindgate currently processes over 8 billion transactions per month, making it a pivotal player in the real-time payment processing industry.
Beyond India, Mindgate’s global presence extends to regions like MENA, ASEAN, Europe, and the US. By integrating its technology with Wibmo, PayU’s paytech business, this collaboration will enhance digital payment capabilities across multiple markets.
Strategic Timing Amid PayU’s IPO Plans
The acquisition comes at a critical juncture, as PayU prepares for its public listing in the second half of 2025. The move reinforces its commitment to expanding its fintech operations, both in India and internationally.
In recent years, PayU has actively pursued acquisitions to strengthen its fintech portfolio. In 2020, it acquired PaySense and merged it with its credit-focused platform, LazyPay. While PayU had previously attempted to acquire BillDesk in a $4.7 billion deal, the transaction fell through due to regulatory conditions not being met.
Looking Ahead
With digital payments continuing to reshape the financial ecosystem, PayU’s investment in Mindgate will drive innovation in real-time payment solutions. The partnership ensures that banks, merchants, and consumers benefit from seamless, secure, and efficient digital transactions.
As PayU gears up for its IPO, this deal marks a significant step in its growth strategy, solidifying its role in shaping the future of fintech and real-time payments worldwide.
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