PayU India has received fresh investment of Rs 302 crore from its parent company, the Dutch technology investor Prosus, to expand its lending operations. 

As part of the investment, 4.9 crore equity shares were issued to MIH Payments Holdings B.V., which serves as the investment vehicle for Prosus' parent entity Naspers.

Inc42 first reported the development citing MCA filings. The report, citing a company spokesperson, also said that the fresh capital will be used to specifically support its credit business expansion, with management targeting breakeven status by September 2025. 

Earlier in April, PayU India had raised Rs 1,013 crore via a rights issue from Prosus.

The fresh capital infusion in PayU India comes as the company struggles to achieve profitability and its initial public offering (IPO) plans continues to elude.

Earlier this week, The Head and Tale reported that the company's IPO is not in sight till June next year. Besides, the value of stock appreciation rights (SARs) allocated to PayU India employees has taken a significant hit over the past financial year, as per internal data seen by The Head and Tale.

PayU India's revenue rose 21.4% year-on-year to $669 million in FY25, as per the latest annual report released by Prosus. However, the company's losses jumped 38% to $44 million in FY25 while its core payments business grew just 12% to $498 million in FY25.

Established in 2002 by a team including Nitin Gupta and Shailaz Nag, PayU India operates as Prosus' digital payments and lending platform. The company evolved from Ibibo's PayU PG service in 2011 before becoming an independent entity in 2014.