Deepening Investment by PayU in Mindgate: Accelerating Expansion of Instant Solutions Globally, Particularly for India
PayU, the payments and fintech business of Prosus, a global consumer internet group and one of the largest technology investors in the world, has announced a significant investment in Mindgate Solutions. This move strengthens their partnership and aims to further drive innovation in India's rapidly evolving real-time digital payments sector.
PayU, which provides payment gateway solutions to over 5 lakhs+ businesses, including India's leading enterprises, e-commerce giants, and Small and Medium-sized Businesses (SMBs), has increased its stake in Mindgate from a strategic minority investor to a majority shareholder, holding 70%. The founders of Mindgate will continue to hold a significant minority, retaining 30% of the company.
Mindgate, headquartered in Mumbai, India, with regional hubs in the Middle East, Southeast Asia, and the UK, specializes in developing advanced payment solutions for banks, government institutions, merchants, and corporates. The company processes over 10 billion digital transactions monthly and facilitates payments worth $1 trillion annually.
With this investment, PayU aims to create a full-stack digital financial services platform to serve all financial needs of consumers, merchants, and banks. Mindgate's expertise in UPI infrastructure and real-time payment solutions will be instrumental in achieving this goal.
George Sam, Co-founder & Business Head of Mindgate Solutions, stated that Mindgate continues to play a crucial role in the growth of India's real-time payments by powering over 10 billion monthly transactions. He added that the partnership with PayU will allow them to deepen their partnership, enhance product offerings, and further drive innovation in India's digital payments sector.
Guhan Muthuswamy, Co-founder & Software Architect of Mindgate Solutions, stated that with PayU's strong merchant stack complementing Mindgate's capabilities, they now have the combined advantage of addressing the acquiring side of the payments ecosystem.
The investment underscores PayU's confidence in Mindgate's strong performance and the vast growth potential in India's real-time payments ecosystem. Anirban Mukherjee, CEO of PayU, expressed his excitement about the partnership, stating that it will help them bring real-time payments solutions to the broader Asia Pacific and MENA regions.
Notably, the digital payments sector in India continues its remarkable growth trajectory, especially driven by real-time payment solutions like NPCI's Unified Payments Interface (UPI), which recorded over 20 billion monthly transactions last month. The EkStep Foundation, under the leadership of Dr. Pramod Varma, who was the chief architect for India's UPI infrastructure, is heavily involved in building Digital Public Infrastructure and open-source protocols that support real-time payment solutions. These initiatives have potential for expansion into the Asia-Pacific and MENA regions.
PayU's operations in India are regulated by the Reserve Bank of India. The company enables businesses to collect digital payments across 150+ online payment methods. Mindgate, with a dedicated team of over 1,600 payment professionals and a portfolio of 60+ global marquee clients, will be a valuable asset in PayU's mission to revolutionize digital payments in India and beyond.
