What a way to start the new decade! We are glad to share with you all that PayU has acquired a controlling stake in consumer lending startup PaySense at a valuation of $185 million. Furthermore, PayU is planning to merge the business operations of its two companies – Paysense and LazyPay – to build a full-stack digital lending platform in India.


Beginning the year 2020 with a bang, PayU is planning to merge operations of our consumer lending business LazyPay with PaySense, India’s fastest growing digital credit platform. The combination will bring together two highly complementary companies, to better serve our customers.

This merger takes us one step closer to achieving PayU’s long term vision of orchestrating a fintech ecosystem in India, by partnering with the right companies and offering multiple financial services. 

PayU will inject a total of upto $200M in the newly-merged enterprise PaySense; $65M of the total amount will be immediately invested, while the balance will be infused in the next 24 months.

Benefits for Customers

While India’s banked population has more than doubled since 2011 to over 80%, credit bureau coverage is still limited. By pooling the strengths of PayU, LazyPay and Paysense, the combined entity will be able to reach out to more new-to-credit Indians, who have a strong appetite for credit.

PayU has a deep understanding of consumer backgrounds, insights into their purchase behavior and affluence levels thanks to our payment gateway business. LazyPay has expertise in driving customer acquisition and engagement and PaySense’s forte is strong analytics, tech & risk management capabilities. Together, we will build one unique platform successfully serving the needs of people who require credit to power their aspirations. 

Leaders Speak

Siddhartha Jajodia, Global Head of Credit, PayU said, “Technology has the power to completely transform people’s access to financial services and the credit market in India is ripe for further digital disruption. This merger is the next step in our journey as we accelerate our vision for credit in India. We’re delighted to welcome Prashanth and his experienced team as we integrate this fast-growing business and build a full-stack digital lending platform aligned with PayU’s overall plan of orchestrating a broader fintech ecosystem in the region.”

Prashanth Ranganathan, Founder and CEO, PaySense added, “Providing more Indian consumers with access to credit is crucial to helping individuals grow and succeed. PayU is a natural partner for us as we both strive to make finance more simple, accessible and transparent. We’re excited to start bringing our personal loan product to more consumers throughout India and truly democratise credit.”

PaySense’s Prashanth Ranganathan (L) and PayU’s Siddhartha Jajodia pose for a picture

PayU’s unified digital credit platform will enable third parties such as banks, NBFCs and alternate lenders to co-lend and grow assets. It will also enable borrowers to access credit whenever and wherever they need it, in a digital and seamless way. 

As a part of the deal, Prashanth Ranganathan, currently PaySense CEO will lead PayU’s credit business in India as the CEO of the new enterprise. 

Read the full media coverage on The Economic Times, The Times of India, ET BFSI, ET-Brand Equity, Live Mint, Fortune, The Hindu Business Line, Business Standard, The Financial Express, CNBC TV 18, Inc42, Your Story, Entrepreneur, and Moneycontrol.

The Road Ahead

At PayU, our investments are driven by our focus on developing new capabilities that better serve our customers, giving them access to products that best suit their local needs. There is great synergy between the businesses and by leveraging it, PayU and PaySense will be able to use their strengths to reach out to the underserved customers, bringing us one step closer to a world without financial borders, in which everyone can prosper.

We are hopeful of many such acquisitions and developments in the future. To know more about our innovations and products,