After scaling payments, PayU wants its lending mojo back

PayU has emerged as one of the strongest players in digital payments with its $4.7 billion BillDesk acquisition. Lending is its other major bet in the Indian fintech ecosystem. But a raging pandemic and a flurry of top-level exits forced PayU to go slow in the credit business. Until now.



Pratik Bhakta

September 22, 2021

9 Min Read

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. 

A $1.5-bn Ambition

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.




As a premium subscriber, you will get access to 3+ premium articles a week
Limited time offer
Launch price
/ Year
INR 3,999
Save 40% with our launch offer.
Please apply the code at checkout.

copyCopy Code

Upgrade Now



As a premium subscriber, you will get access to 3+ premium articles a week

Smart Information, Better Decisions

We report on the latest and most important developments in India’s biggest tech companies and also disruptive startups so you can make better decisions.

Seasoned Team

Tracking the highs and lows of India’s biggest internet companies over the past decade has given us access to the right decision-makers to interpret the latest state of play.

Inside View with Org Charts

Know the key decision-makers with Org Charts. We thrive on decoding boardroom conversations so we can bring you a 360° view of what's happening at India's high-growth companies.

Filtering the Noise

New economy companies cannot always be evaluated using traditional methods. We analyze the relevant metrics, ask the tough questions to get you the right picture

For subscribers only

Premium Reads


View More >>

Deeply reported and objective news on the country´s fastest-growing companies and the people behind them.