PayU India's plan to invest up to $120m in FY26 credit and payments infrastructure resurfaces from July
Resurfacing a July 2025 report, PayU India plans to invest $100–$120 million by FY26-end, allocating $50–$60 million to credit growth and potentially $60–$70 million more to Mindgate Solutions. The firm expects its credit unit to reach EBITDA break-even in Q2 FY26 and group profitability during the year.
What happened
PayU India plans to invest $100-$120 million by end-FY26 in credit growth and payments infrastructure, including a potential Mindgate infusion. The company
Key facts
- $100-$120 million planned investment by end-FY26
- $50-$60 million for credit business
- $60-$70 million potential additional Mindgate Solutions infusion
- 43.5% Mindgate stake acquired in March
- $35 million infused in Q1 FY26
- almost $200 million invested by Prosus in FY25
- $498 million FY25 payments revenue, up 12%
- $171 million FY25 PayU Finance revenue
- $669 million FY25 consolidated revenue
- more than 500,000 customers
- about 2,000 new customers added monthly
Why this matters
The potential $60–$70 million Mindgate Solutions investment highlights payments-infrastructure consolidation as PayU seeks capabilities and scale alongside its credit expansion.
What to watch
- Q2 FY26 confirmation of credit-unit EBITDA break-even or revised guidance.
- Actual FY26 capital deployment versus the stated $100–$120 million plan.
- Terms, timing and strategic scope of any additional Mindgate Solutions investment.
- Loan-book growth, approval rates, repeat-borrower mix, delinquencies and credit-loss provisions.
- Payment TPV/GMV growth and merchant acquisition or retention trends.
- UPI and payment-infrastructure contract wins with banks or large enterprises.
- Competitive responses from Razorpay, PhonePe, banks and other embedded-credit providers.
- RBI or regulatory changes affecting digital lending, UPI economics, data use or loan-service-provider arrangements.
- Prioritize lending products embedded at checkout and merchant ecosystems where repayment behavior can be observed through payment flows.
- Expand partnerships with banks and regulated lenders to increase credit capacity without retaining disproportionate balance-sheet risk.
- Use Mindgate capabilities to pursue higher-value bank, enterprise and UPI infrastructure contracts rather than relying solely on payment-processing margins.
- Increase merchant retention through bundled payment acceptance, settlement, fraud tools and working-capital offers.
- Tighten credit monitoring, cohort-based underwriting and collections early as loan originations accelerate.