PayU in talks to buy consumer lending platform PaySense

NEW DELHI| BENGALURU: PayU is in talks to acquire online consumer lending platform PaySense, in a potential cash- and-stock deal that is likely to value the Mumbai-based company at $60-70 million, according to two sources aware of the developments.

The deal, if successful, will see the Naspers-owned fintech major score its second India-focused buyout this year, having acquired US-based fintech firm Wibmo earlier and comes a little more than a year after PayU led a $18 million equity financing round in PaySense.

“PaySense has been in the market to raise fresh funding, looking for their Series-C, and PayU has shown interest in acquiring the company,” said one of the sources.


The startup counts venture capital firms Nexus Venture Partners and Jungle Ventures among its list of institutional investors. Both investors are likely to exit as part of the transaction. PayU, which was reported to have put in $11.5 million as part of the capital raising round, holds an estimated 20% stake in PaySense.

When contacted, a PayU India spokesperson said it does not comment on mergers and acquisitions or divestiture activities or on market rumours. Separately, PaySense cofounder Sayali Karanjkar did not respond to a questionnaire till the time of going to press.

PayU, which is valued at $2.5 billion, is in the process of evolving from a pure play payments company to a fintech platform, a large part of which will be digital lending. India has emerged as the fastest growing market for PayU globally and accounts for almost half of the volumes processed by it. The minority investments in its Indian portfolio, which include ZestMoney and PaySense, touched a combined monthly loan issuance of $15 million as of March 31, according to Naspers’ annual report. “PayU had always wanted to build an entire chain in the lending play, while LazyPay would be their starting point with small-value short-duration loans, PaySense and Zest Money were their bets in the consumer lending space. With this acquisition they can consolidate their position here,” said the person quoted earlier.