Prosus-owned Dutch payments company PayU said on Thursday that it has acquired a stake in Mumbai-based Mindgate Solutions as part of its strategy to strengthen its position in the $1-trillion (Rs 86 lakh crore) real-time payments market.
As part of the strategic transaction, PayU will acquire a 43.5% stake in Mindgate, the company said in a statement. The founders of Mindgate will retain majority ownership. The specific terms of the transaction were not disclosed.
The acquisition will enable Mindgate to enhance its infrastructure for supporting financial transactions and further strengthen its existing partnerships with banks.
This deal comes nearly six years after Mindgate raised an undisclosed amount of funding from US-based payments and banking solutions provider ACI Worldwide Inc.
Founded in 2008 by George Sam and Guhan Muthuswamy, Mindgate offers payment infrastructure for transactions through UPI, which processes over 8 billion digital transactions each month via its partner banks. The company claims to facilitate payments worth $1 trillion annually.
Mindgate specializes in crafting advanced payments solutions for banks, government institutions, merchants, and corporates using microservices architecture and real-time streaming. The company has operations in the Middle East and a growing presence in Europe, the UK, ASEAN, and the US. It employs a team of 1,400 payment professionals and serves over 60 global marquee clients.
“With a strong foundation in powering high-volume transactions and enabling seamless UPI experience, Mindgate is well-positioned to drive the next wave of innovation in digital payments," said Sam, co-founder and business head at Mindgate.
"This collaboration will enhance secure, scalable payment solutions for banks, businesses, and merchants, strengthening our role as a leading player in the evolving global payments landscape,” he added.
India's digital payments system is seeing stellar growth, with UPI payments expected to reach 439 billion by FY29, according to a PwC report from last year. UPI is projected to account for 91% of all retail digital payments by 2028-29.
Mindgate's expertise will also complement PayU’s international network through its full-stack paytech business, Wibmo.
For the financial year ended March 2024, Mindgate reported a 34% rise in revenue from operations, totaling Rs 256.55 crore, while its net profit more than tripled to Rs 23.19 crore, according to VCCEdge, the data intelligence platform of VCCircle.
