PayU India, the digital payments company owned by Dutch investor Prosus, has increased its stake in Mindgate to 70% to become the majority shareholder.

The transaction will allow both companies to deepen their partnership, enhance product offerings, and further drive innovation the digital payments ecosystem, said PayU India in a statement.

Both Mindgate founders -- George Sam and Guhan Muthuswam -- will continue to hold a significant minority, together retaining 30% of the company, it added.

In March this year, PayU India acquired a 43.5% stake in Mindgate for $68 million. Prosus' latest annual report had showed that it added another 26.5% stake to raise its ownership to 70% for $72 million.

The Head and Tale had exclusively reported earlier this year that PayU is picking up a strategic stake in Mindgate to boost capabilities in UPI 2.0 and real-time payments. The Head and Tale also recently did a deep dive on how its Mindgate investment is shaping up.

Notably, PayU India has an obligation to purchase the remaining 30% ownership interest in Mindgate from the non-controlling shareholders under a put option arrangement exercisable during a specified future period, as per Prosus' latest annual report, ultimately giving full ownership.

In FY24, Mindgate had reported revenue of Rs 260.7 crore as compared to Rs 195 crore in FY23 and registered a net profit of Rs 23.2 crore as compared to Rs 6.5 crore, as per Tracxn. In FY25, its estimated revenue was Rs 333 crore and net profit was Rs 41.6 crore, as per the annual report. Back of the calculations show that Mindgate would have accounted for around just 6% of the PayU India’s revenue in FY25.