PayU India which the Indian leg of Naspers-owned payment service provider has set up a targeted revenue of $100 million for the current financial year. If the above target is achieved by the company, then it will make India the largest market for fintech company.
PayU India affirms about 250000 merchants are using its platform and has been reported revenue of almost $61 million for the fiscal year of 2017.
Chief Executive of the company talks about revenue
Chief executive at PayU, Amrish Rau said that, “In India, we are doing about Rs 6,000 crore on a monthly basis… Almost 80% of our revenue will come from our core payment business. At $100 million, India becomes the single biggest market for PayU globally”.
PayU has competition with Mobikwik, Snapdeal’s Freecharge, Paytm which is backed by Softbank and Alibaba’s Alipay. The company has been stretching its leg in India almost five years now and has come out as a prominence when it acquired Citrus Pay, home-grown fintech venture, for $130 million in 2016.
Company claims growth of 80% in recent 8 months
Rau also said that, “At the time of the acquisition, PayU India and Citrus Pay were doing transactions of about Rs 3,300 crore cumulatively. In the past eight months, we’ve seen growth of 80%”.
Demonetization in India in November of last year drove a significant growth in digital payment sectors.
Digital Payments 2020
As per an industry report, Digital Payments 2020 which was released by Boston Consulting Group and Google a year ago was foreseen to gain $500 billion by 2020 and contribute around 15% to the GDP of the country.
Areas for which company has keen concern
As per Rau, PayU India which is a 100% subsidiary of PayU makes up the Naspers, epayments division of South African media and technology amalgamation. It is widely focusing on mainly three areas for growth and development i.e. credit, faster payments and app or digital based bank.
He said, “We are saying that the next wave in India will be around all the alternate payment modes, money moving between two individuals. Credit is completely broken here, so, how do you solve that? How do you start getting into the banking related experience?”
Comapy has contributed $250 Mn
As per Rau, company has contributed almost $250 million in the course of recent years in Asia’s third-biggest economy. The amount is expected to increase since it scouts for acquisition as well as venture opportunities for growth.
Other than Citrus Pay acquisition, it contributed a vital interest in Zestmoney, consumer lending app in February and it has also put $120 million in Kreditech, German alternative lending startup, as well.