- PayU recently acquired a controlling stake of financial technology company PaySense at a valuation of $185 million. These are the details about the deal.
PayU recently acquired a controlling stake of financial technology company PaySense at a valuation of $185 million. With the deal, PayU is planning to merge it with its credit division called LazyPay.
Owned by Prosus, PayU is going to invest $200 million into the combined entity over the next couple of years. PaySense currently employs 240 people and served 5.5 million consumers so far, according to TechCrunch.
Prior to this deal, PaySense raised about $25.6 million in funding. And PayU was an investor in PaySense’s Series B round of funding a couple of years ago. At that time, PaySense had a valuation of between $48 million and $50 million.
PayU’s global head of credit Siddhartha Jajodia told TechCrunch that this merger will enable PayU to gain a larger market share in the credit business. And said that this was the largest merger of its kind in India. The combined entity is estimated to be valued at $300 million.
Combined, the two companies have distributed over $280 million in credit to consumers. And the goal is to hit “a couple of billion dollars” in the next five years.
As part of the merger, PaySense and LazyPay will build common and shared technology infrastructures. But in the near-term, LazyPay and PaySense will continue to operate separately.