PayU to acquire PaySense for $185 mn, merge it with LazyPay
Fintech company PayU is set to acquire a controlling stake in PaySense and all its assets at a valuation of $185 million. It has also announced plans to merge its growing digital credit platforms LazyPay and PaySense.
Fintech company PayU is set to acquire a controlling stake in PaySense and all its assets at a valuation of $185 million. It has also announced plans to merge its growing digital credit platforms LazyPay and PaySense. The company will also inject a total of up to $200 mn in the new enterprise in the form of equity capital, it said in a statement. Out of this, $65 mn will be immediately invested, while the balance corpus will be infused in the next 24 months to grow the loan book.
The merger comes part of PayU's long term vision of orchestrating a fintech ecosystem in India by partnering with the right companies and offering multiple financial services. PayU’s unified digital credit platform will enable third parties such as banks, NBFCs and alternate lenders to co-lend and grow assets and will also enable borrowers to access credit when and where they need it in a digital and seamless way.
“Technology has the power to completely transform people’s access to financial services and the credit market in India is ripe for further digital disruption. This merger is the next step in our journey as we accelerate our vision for credit in India. We’re delighted to welcome Prashanth and his experienced team as we integrate this fast-growing business and build a full-stack digital lending platform aligned with PayU’s overall plan of orchestrating a broader fintech ecosystem in the region," Siddhartha Jajodia, Global Head of Credit, PayU said.
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The joint team will combine its complementary assets, capabilities and talented teams with the goal of making access to credit quick, seamless and widely available for the underserved in India and drive higher customer satisfaction.
As a part of the deal, Prashanth Ranganathan, currently PaySense CEO will lead PayU’s credit business in India as the CEO of the new enterprise. Prashanth will continue to retain a stake in the merged enterprise, while all the other investors and shareholders will exit.