PayU’s $185-million acquisition of Mumbai-based PaySense in January 2020 was one of the largest in digital lending at the time, signaling the Dutch fintech giant’s ambitions to dominate India’s personal loans market.
Two months later, India announced a Covid lockdown that the central bank followed with a six-month moratorium for borrowers. Loan disbursals and payment collections crashed.
Collection efficiency recouped by October as the lockdowns eased. But the group’s consolidated assets under management dropped from Rs 557 crore ($75 million) as on September 30, 2020 to Rs 479 crore ($65 million) on March 31, 2021.
Now, although fears of a third wave of Covid loom large, the macroeconomic environment is optimistic, and collections and new loan disbursals are gathering steam—an opportunity the group, now under a new management, wants to grab.
On June 1, 2020, PayU Finance, registered as a non-banking financial company, was made a subsidiary of PaySense. PayU’s global parent, Prosus, holds more than a 75% stake in PaySense, through which it runs its digital lending business in India. Prosus is the global business arm of South African internet company Naspers.
This is a premium article and available only to subscribers.
Exclusive access to this article for 1 year.
What you get
Premium In-Depth Stories
5 articles every week
Archives
>3 years of archives
Newsletter
5 every week
Gifting Credit
5 premium articles every month
Visual Infographics
1 every week
Sessions
3 screens Concurrently
Upgrade how you think, work, and win — Freedom Sale is on!
Have a coupon code?
Access unlimited content at a special discounted rate. Trusted by top VC’s and leading organizations, we provide bulk subscriptions for groups of 30+. Contact us for more details
Top educational institutions have collaborated with us for campus-wide subscriptions. For bulk campus-wide access, please get in touch.
Join our community of 100,000+ top executives, VCs, entrepreneurs, and brightest student minds
Convinced that The Captable stories and insights
will give you the edge?
Convinced that The Captable stories
and insights will give you the edge?
Subscribe Now
Sign Up Now