Digital payments giant PayU has decided to delay its initial public offering (IPO) plans to the next fiscal year. The Prosus-backed company had initially aimed for a public listing either in the current calendar year or by the second half of 2024.
“Although PayU has selected Goldman Sachs as one of its lead bankers, the decision to push the IPO to the next fiscal year has been made,” disclosed one source on condition of anonymity. “The company now expects to go public sometime after the first quarter of FY26.”
PayU had been eyeing an IPO for the past few years, but plans were postponed when the Reserve Bank of India (RBI) returned its payment aggregator license due to complications within the company’s corporate structure. After resolving these issues, PayU successfully regained the license in April 2024 and resumed onboarding new merchants, a process that had been halted between January 2023 and April 2024.
In India, PayU serves over 500,000 merchants across three major segments: payments, credit, and PayTech. The company also boasts an annual transaction volume (TPV) of more than $60 billion.
According to sources, PayU has been focusing on preparations for its public listing. “The company is likely to file its Draft Red Herring Prospectus (DRHP) in early 2025,” revealed another insider, who also requested anonymity.
A PayU spokesperson commented, “We are committed to scaling our operations and cementing our position as an Indian entity, which includes the goal of becoming a publicly traded company. While we explore multiple funding options, access to public markets remains an essential consideration for long-term capital. Though we avoid discussing specific funding paths, our focus remains on maintaining strong governance, compliance, and operational controls.”
The company’s revenue growth slowed to just 11%, reaching $444 million in FY24, with a shift into losses, largely due to restrictions imposed by the RBI. To steer towards profitability, PayU recently laid off around 100 employees from its credit division, as reported by The Head and Tale. Several senior executives have also exited the company over the past two years.