PayU is acquiring a controlling stake in fintech startup PaySense at a valuation of $185 million and plans to merge it with its credit business LazyPay as the nation’s largest payments processor aggressively expands its financial services offering.
The Prosus-owned payments giant said on Friday that it will pump $200 million — $65 million of which is being immediately invested — into the new enterprise in the form of equity capital over the next two years.
PaySense, which employs about 240 people, has served more than 5.5 million consumers to date, a top executive said.
Cumulatively, the two services have disbursed over $280 million in credit to consumers, said Jajodia.
But at least for the immediate future, LazyPay and PaySense will continue to be offered as separate services to consumers, explained Prashanth Ranganathan, founder and chief executive of PaySense, in an interview with TechCrunch.
PayU’s Jajodia said PaySense and LazyPay will likely explore building new offerings such as credit for small and medium businesses.
PayU has already invested north of half a billion dollars in its India business.