Payments firm PayU plans to go public in India within the second half of subsequent yr.

Ervin Tu, interim CEO of guardian firm Prosus, revealed that data Wednesday (Nov. 29) throughout an earnings name, per a report by Reuters.

The firm’s half-year earnings present that PayU’s funds operation in India loved a 15% development in income for that interval, reaching $211 million.

The information follows a report from October that PayU was searching for regulatory approval for an preliminary public providing (IPO) in India price at the very least $500 million, a transfer that would worth the corporate at between $5 billion and $7 billion.

Prosus introduced in August it was selling the majority of its worldwide enterprise to Rapyd for $610 million so it might spend extra time specializing in the Indian cost and FinTech house. The firm has stated it has upwards of 450,000 retailers and two million credit score prospects in India.

“Innovation and progressive regulation are driving rapid change within the digital payments industry in India, and we see many new opportunities to further expand our business there,” Bob van Dijk, Prosus’ then-CEO, stated on the time. “As one of the fastest-growing major economies in the world, we strongly believe in digital India and are excited about the next phase of growth for PayU in India.”

The deliberate IPO is occurring as India’s youthful, tech-savvy inhabitants continues its shift away from money to different cost strategies. As famous right here, Indian residents have lengthy been accustomed to using their mobile phones to pay payments, financial institution and pay retailers on-line and in-store utilizing one among many digital wallets.

India additionally has one of many world’s fastest-growing eCommerce markets, with annual on-line gross sales that exceeded $67 billion in 2021. Close to 90% of its grownup residents use cellular wallets, whereas 833.7 million folks in India are related to the web.

PYMNTS’ Intelligence has proven that more than half of shoppers in India paid for his or her final retail buy by UPI.

“UPI is more popular for digital retail purchases: 55% of India’s consumers paid for their most recent digital retail purchase with UPI, while 37% did the same for in-store retail purchases,” PYMNTS wrote in August. “UPI is also the preferred payment method when purchasing retail products, as half of surveyed consumers identified UPI as their preference.”