Dutch technology investor Prosus has decided to delay the IPO of its Indian digital payments and lending firm, PayU, which was planned for 2025.

The company will instead focus on enhancing PayU’s operations over the next six to twelve months.

In a statement to Reuters, Prosus chief financial officer Nico Marais confirmed that listing PayU is not a priority for the coming year.

The company had initially planned to list PayU by 2025 but is now concentrating on improving the business.

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🔗 Source: Reuters

🧠 Food for thought

1️⃣ Strategic delay aligns with broader Indian IPO market reset

Prosus’s decision to postpone PayU’s IPO reflects a wider trend among Indian startups prioritizing business improvement over rushed public listings.

As of early 2025, while 20 startups are preparing for IPOs, many are deliberately slowing their plans due to market corrections and economic uncertainties 1.

The Indian IPO landscape has evolved toward quality over quantity, with the average IPO size increasing to ₹1,870 crore in 2025, indicating investors’ preference for more mature businesses 2.

This cautious approach makes strategic sense considering only one tech company (Ather Energy) has successfully listed in 2025 so far, and even that debut was described as “muted” 1.

For Prosus, taking 6-12 months to strengthen PayU’s operations aligns with market analysts’ expectations of an IPO resurgence in the latter half of 2025, contingent on improved market stability 1.

2️⃣ Optimizing position in India’s competitive fintech ecosystem

PayU operates in a rapidly maturing Indian fintech market that now boasts 24 unicorns with a combined market capitalization of approximately USD 120 billion, making it the third largest globally 3.

The fintech adoption rate in India stands at an impressive 87%, significantly higher than the global average of 64%, creating both opportunities and competitive pressures for companies like PayU 4.

PayU’s focus on multiple verticals including payments, credit, and financial inclusion positions it strategically within this ecosystem, but likely requires operational refinement before a public offering 5.

The regulatory landscape is also evolving, with the Reserve Bank of India introducing new measures for streamlined KYC processes and enhanced consumer protection in digital lending, areas directly relevant to PayU’s business model 4.

For Prosus, enhancing PayU’s operations before an IPO demonstrates a long-term investment approach, particularly important as India’s fintech sector transitions from a growth-at-all-costs phase to one emphasizing sustainable profitability.

Recent Prosus developments

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