There have been reports that fintech company PayU is all set to acquire a controlling stake in PaySense at an approximated valuation of $185 million. There are plans to merge its growing digital credit platforms LazyPay and PaySense.The company is expected to inject a total of upto $200 million in the form of equity capital, in the new enterprise. As of now, $65 million would be invested immediately and the balance corpus will be infused in the upcoming 24 months to grow the loan book.
This merger is a part of PayU’s long term vision of orchestrating a fintech ecosystem in India. This is by partnering with the right companies and also offering multiple financial services. Banks, NBFCs and alternate lenders to co-lend and grow assets that would enable borrowers to access credit as and when they need it in a seamless way as third parties.
In the words of the Head of Credit, Siddhartha Jajodia, technology has the power to completely transform people’s access to financial services and the credit market is quite ripe in India. Also, this merger is the next step in the digital major’s journey and also building a broader fintech ecosystem in the region.
What Are Rivals Of PayU Upto?
The major rivals of PayU include Paytm, Instamojo, CC Avenue and MobiKwik. While Paytm has come up with new additions like booking your gas services online, other people are also faring quite well. However, it is to be seen whether, with this merger, PayU comes up with something magnificent that its competitors would find a tough to crack. Going by the data and statistics seems that it is probably not that far fetched.
Also read: India’s HighRadius Raises $125 Mn Funding, Becomes the First Unicorn of 2020.