Digital payments major PayU has acquired an additional 27% in Mindgate Solutions, increasing its stake in the Mumbai-based payment processing company to a majority 70%.
The acquisition valued Mindgate at around $300 million, people aware of the development said.
This is the second fund infusion from PayU into the company, after it acquired 43% in March 2025.
The remaining 30% of Mindgate is held by its founders George Sam and Guhan Muthusamy, who will continue to run the business.
Anirban Mukherjee, chief executive officer of PayU, confirmed the development, but did not comment on the value at which the deal was closed.
“We are taking a bet on a company built by two Indian entrepreneurs, which is processing 50% of the entire UPI payments volume,” Mukherjee told ET. “Now, with the majority stake, we will propel Mindgate towards building and strengthening credit products on UPI.”
The 2008-founded firm had raised a $10 million external round from ACI Worldwide back in 2019. Now, it joins Wibmo and Paysense, which operate as different business units within PayU.
Wibmo focuses on frauds and card payments, while Paysense has been rebranded as PayU Finance, driving the credit business of the group.
PayU said it will further invest $5-10 million to drive synergies with its other business verticals, driving new innovative products and building more user-friendly use cases.
Mukherjee said Mindgate is also building transaction banking platforms for international financial services players and will now introduce those features in India as well.
According to him, in FY25, Mindgate grew its transaction volumes by 50%, revenue by 40%, and doubled its Ebitda (earnings before income tax depreciation and amortisation) from the FY24 numbers.
According to Tracxn data, Mindgate closed FY24 with revenues of Rs 260 crore and a net profit of Rs 23 crore.
The company is also investing heavily in international expansion.
The Mindgate acquisition is a critical step for PayU, as it diversifies its offerings in India. Through the deal, PayU gets access to the lucrative UPI transaction processing business, a highly profitable business given the growth trajectory of the payment system.
“UPI is becoming a full-payment system, beyond just an instant payment mode,” Mukherjee said.
As UPI brings in credit cards and international payments, it is replicating what companies like Visa and Mastercard did with the card ecosystem. PayU is placing a bet on that opportunity.
In May 2025, PayU got the final clearance from the Reserve Bank of India (RBI) to operate as an online payment aggregator.
For FY25, PayU India’s payments business reported a 12% year-on-year increase in revenue to $498 million (approximately Rs 4,317.6 crore). Total payment volume (TPV) grew 14%, led by growth in financial services, government, airlines, and food delivery segments.
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The acquisition valued Mindgate at around $300 million, people aware of the development said.
This is the second fund infusion from PayU into the company, after it acquired 43% in March 2025.
The remaining 30% of Mindgate is held by its founders George Sam and Guhan Muthusamy, who will continue to run the business.
Anirban Mukherjee, chief executive officer of PayU, confirmed the development, but did not comment on the value at which the deal was closed.
“We are taking a bet on a company built by two Indian entrepreneurs, which is processing 50% of the entire UPI payments volume,” Mukherjee told ET. “Now, with the majority stake, we will propel Mindgate towards building and strengthening credit products on UPI.”
The 2008-founded firm had raised a $10 million external round from ACI Worldwide back in 2019. Now, it joins Wibmo and Paysense, which operate as different business units within PayU.
Wibmo focuses on frauds and card payments, while Paysense has been rebranded as PayU Finance, driving the credit business of the group.
PayU said it will further invest $5-10 million to drive synergies with its other business verticals, driving new innovative products and building more user-friendly use cases.
Mukherjee said Mindgate is also building transaction banking platforms for international financial services players and will now introduce those features in India as well.
According to him, in FY25, Mindgate grew its transaction volumes by 50%, revenue by 40%, and doubled its Ebitda (earnings before income tax depreciation and amortisation) from the FY24 numbers.
According to Tracxn data, Mindgate closed FY24 with revenues of Rs 260 crore and a net profit of Rs 23 crore.
The company is also investing heavily in international expansion.
The Mindgate acquisition is a critical step for PayU, as it diversifies its offerings in India. Through the deal, PayU gets access to the lucrative UPI transaction processing business, a highly profitable business given the growth trajectory of the payment system.
“UPI is becoming a full-payment system, beyond just an instant payment mode,” Mukherjee said.
As UPI brings in credit cards and international payments, it is replicating what companies like Visa and Mastercard did with the card ecosystem. PayU is placing a bet on that opportunity.
In May 2025, PayU got the final clearance from the Reserve Bank of India (RBI) to operate as an online payment aggregator.
For FY25, PayU India’s payments business reported a 12% year-on-year increase in revenue to $498 million (approximately Rs 4,317.6 crore). Total payment volume (TPV) grew 14%, led by growth in financial services, government, airlines, and food delivery segments.
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