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 to build a full-stack digital lending platform in India.
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.