PayU acquires majority of Indian credit business PaySense
Payments and fintech company will inject $200m into PaySense over two years, $65m of which is being invested immediately
PayU, a payments and fintech company in India, is acquiring a majority stake in fintech start-up PaySense for an equity value of $185m. It plans to merge it with its credit business LazyPay.
PayU said that it will inject $200m into PaySense over two years, $65m of which is being invested immediately. This takes the deal size to more than $300m (more than 2,100 crore rupees).
Its plan is to merge business operations to build a “full-stack” digital lending platform in India.
PaySense and LazyPay will build a common and shared technology infrastructure. But for the immediate future, LazyPay and PaySense will continue to be offered as separate services to consumers.
PaySense employs about 240 people, has served more than 5.5 million consumers to date and has previously raised about $25.6m from Nexus Venture Partners, and Jungle Ventures, Rocketship and angel investors who have decided to exit from the company.
It allows consumers to secure long-term credit for financing their new vehicle purchases and other expenses. PaySense’s management team will now become part of the PayU’s credit team.
LazyPay primarily focuses on providing short-term credit to consumers to facilitate orders on food delivery platforms, e-commerce websites and other services.
Its credit ranges between $210 and $7,030.