Financial technology firm, PayU has lately announced that it is associating with PayUs subsidiary business, LazyPay with the Mumbai-headquartered company, PaySense.
With this deal, PayU will procure a controlling share in the Mumbai-based startup and also own its assets worth $185 million. Furthermore, the parent firm of LazyPay will infuse an aggregate of $200 million in the newly established business as equity capital.
As per the deal, $65 million out of the total sum will be infused instantly whereas the remaining portion will be invested in the coming 24 months to enhance the credit book.
This merger is the next step in our journey as we accelerate our vision for credit in India. Were 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 PayUs overall plan of orchestrating a broader fintech ecosystem in the region, Siddhartha Jajodia, Global Head of Credit at PayU, said in the companys official statement.
Its understanding of consumer backgrounds and insights into their purchase behavior and affluence levels from its payment gateway business, and LazyPays deep experience in driving customer acquisition, combined with PaySenses strong analytics, technology, and risk management capabilities will enable the combined entity to serve more of the new-to-credit Indian population, PayU 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. Were excited to start bringing our loan product to more consumers throughout India and truly democratize credit, Prashanth Ranganathan, Founder, and CEO at PaySense, said in the companys official statement.