Digital credit platform PayU on Friday announced it will merge the business operations of “buy now pay later” platform LazyPay and PaySense to build a full-stack digital lending platform in India. PayU has acquired digital credit start-up PaySense for $185 million.
According to the company, the planned merger is aligned with its long term vision of orchestrating a fintech ecosystem in India by partnering with the right companies and offering multiple financial services.
“Technology has the power to completely transform people’s access to financial services and the credit market in India is ripe for further digital disruption. This merger is the next step in our journey as we accelerate our vision for credit in India,” Siddhartha Jajodia, Global Head of Credit, PayU, said in a statement.
“We’re 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 PayU’s overall plan of orchestrating a broader fintech ecosystem in the region.”
As a part of the deal, Prashanth Ranganathan, the current CEO of PaySense will lead PayU’s credit business in the country as the CEO of the new enterprise.
“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. We’re excited to start bringing our personal loan product to more consumers throughout India and truly democratise credit,” said Ranganathan, Founder and CEO, PaySense.
He will continue to retain a stake in the merged enterprise, while all the other investors and shareholders will exit.
PaySense’s strong management team of seasoned technology and fintech experts will also become part of the PayU’s credit team, adding value to the combined business.