Digital payments major PayU has acquired a strategic stake in payments infrastructure company Mindgate Solutions. The company has acquired a 43.5 percent stake, while the majority ownership will remain with the company’s founders.
Sources closed to the development have pegged the enterprise valuation of Mindgate Solution around $150-200 million. PayU is expected to pay around $100-110 million for its stake in the company.
Anirban Mukherjee, CEO, PayU said “Together, we will enhance the infrastructure that supports seamless financial transactions, delivering exceptional value to banks, merchants, and consumers worldwide.”
Founded in 2008, Mindgate Solutions specialises in developing advanced payment solutions for banks, government institutions, merchants, and corporates. It competes with other UPI and payment technology providers like Juspay and Sarvatra.
Mumbai-based company serves banks such as State Bank of India, Punjab National Bank, and HDFC Bank. The company has an established presence in markets, including MENA, ASEAN, Europe, and the US, which could provide PayU with additional international growth opportunities.
Significant milestone
“This partnership marks a significant milestone in Mindgate’s global journey, combining our expertise in real-time digital payments with PayU’s market reach,” said George Sam, Co-founder and Business Head of Mindgate Solutions.
PayU stated that the deal reinforces its presence in India’s digital payments sector while enabling Mindgate’s global growth. The investment is expected to strengthen Mindgate’s collaborations with banks and enhance merchant payment solutions. Processing over 8 billion transactions per month, Mindgate plays a crucial role in providing real-time payment infrastructure for leading Indian banks.
Mindgate has more than 1,300 employees and is one of the largest UPI technology service providers in the industry and works with the country’s largest banks. In 2019, the company secured equity funding from ACI Worldwide, a global payments major. According to data from Tracxn, Mindgate had raised $10 million from ACI Worldwide at a valuation of $60 million.
This is the second investment for PayU in the financial infrastructure space after it acquired Wibmo in 2019. . For FY24, PayU India’s revenue grew 11 per cent to $444 million driven by increasing volumes from existing merchants and growing value-added services such as affordability, the firm said. The fintech firm processed over $71 billion in total payments volume
