Payment and fintech company PayU has decided to acquire a controlling stake in digital credit platform PaySense, including its assets, in a deal valued at $185 million.

As part of the transaction, PayU’s consumer lending businesses, LazyPay and PaySense, will merge their business operations to build a full-stack digital lending platform in India.

“Additionally, PayU will inject a total of up to $200 million in the new enterprise in the form of equity capital; $65 million of the total amount will be immediately invested, while the balance corpus will be infused in the next 24 months to grow the loan book,” it said in a statement on Friday.

As a part of the deal, Prashanth Ranganathan, the current CEO of PaySense, will lead PayU’s credit business in India as the CEO of the new enterprise.

Ranganathan will continue to retain a stake in the merged enterprise, while all the other investors and shareholders will exit.

PaySense’s management team of technology and fintech experts will also become part of the PayU’s credit team.

Set up in Mumbai in 2015, PaySense has assets under management of more than ₹500 crore.

It has over 5.5 million registered customers with loan disbursement of more than ₹1,100 crore.

Siddhartha Jajodia, Global Head of Credit, PayU, said: “This merger is the next step in our journey as we accelerate our vision for credit in India.

“We are delighted to welcome Prashanth and his 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.”

 

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