Payments major PayU has acquired a strategic stake in Mindgate Solutions. As a part  of this deal, PayU will acquire a 43.5% stake in Mindgate, while the majority ownership will remain with the company's founders, the company stated.

While the deal amount has not been disclosed, The Head and Tale has learned from sources that PayU will eventually buyout 100% stake in Mindgate over time. "Currently, PayU is acquiring ACI Worldwide's stake in Mindgate, along with some founders' stake. ACI may end up holding some residual with an assured buyout of the balance by PayU at some point," one source suggests.

In January, The Head and Tale was the first to report about this development. We told you that PayU is acquiring the Mumbai-based UPI infrastructure firm Mindgate for about $100 million.

"This investment in Mindgate enables PayU to actively contribute to the ongoing revolution in  India’s digital payment landscape, driven by instant payment systems like UPI, developed by  the National Payments Corporation of India (NPCI). As NPCI continues to expand UPI both domestically and globally, with a vision to process 100 billion transactions per month in India by 2030, Mindgate plays a vital role by providing the end-to-end real-time payment infrastructure stack and expertise for several leading banks in India," PayU said in its statement.

George Sam, co-founder and business head, Mindgate Solutions, said “Our partnership with  PayU is a significant milestone in Mindgate’s global expansion journey, combining our proven expertise in real-time digital payments with PayU’s extensive market reach. 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."

The Head and Tale had then reported that Mindgate’s expertise parallels that of Wibmo, another payments infrastructure company acquired by PayU in 2019 for $70 million to bolster its card stack. However, over the past few years the card payments landscape has dwindled in the country as UPI adoption surged. 

In its press release, PayU stated, "With a growing presence in MENA, ASEAN, Europe, and the US, Mindgate’s expertise will  complement PayU’s extensive international network through Wibmo its Paytech business."