Prosus, the funding arm of South African multinational Naspers, is among the many largest backers of Indian new-age web corporations together with Swiggy, Byju’s, Meesho, amongst many others.
An individual conscious of the matter mentioned the layoffs are unfold throughout varied groups and primarily impacted PayU India’s unit, Wibmo, a digital fee safety and cellular fee know-how agency it acquired in 2019 for $70 million.
PayU India’s fintech companies embody Wibmo, LazyPay and Citrus Pay.
“Keeping in mind our highest strategic priorities, we are realigning teams across some businesses in India,” a spokesperson for PayU mentioned, confirming the event. “…we will have (to) part ways with some of our colleagues. Close to 150 employees, which is less than 6% of our total employee strength, will be impacted from organisational realignment.”
The spokesperson mentioned that, as the corporate focuses on making a full-stack digital monetary providers ecosystem in India, it was vital to make sure that PayU had “the right structure and resources in place and is nimble enough to respond to a fast-evolving fintech market and seize the opportunities it presents.”
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The firm didn’t have “any plans for any major downsizing”, the spokesperson added.
In October,
Prosus terminated its $4.7 billion acquisition of on-line funds gateway agency
BillDesk by
PayU Payments. The agency’s choice to drag out of the deal got here barely a month after India’s anti-trust regulator – Competition Commission of India (
CCI) –
had accepted the contours of the deal that was first introduced in August 2021. The merger was anticipated to create a web based funds gateway juggernaut that may course of $147 billion in annualised complete funds worth (TPV), virtually twice that of its nearest contender Razorpay, which processes $80 billion in annual TPV.
Earlier this 12 months, the Reserve Bank of India ordered that pay as you go fee devices (PPIs) shouldn’t be loaded with credit score traces. This had precipitated PayU India’s lending arm LazyPay to make modifications in its business mannequin round its card providing, LazyCard. In July, ET reported that
LazyPay needed to droop its buy-now-pay-later (BNPL) fee product LazyPlus UPI, amid rising regulatory scrutiny of card-based credit score fintech corporations.
For monetary 12 months 2021-22,
PayU Payments reported an over 50% year-on-year bounce in consolidated income to Rs 2,130.2 crore. It additionally clocked in internet revenue of Rs 125.8 crore in the course of the 12 months. As for the 12 months ended March 31, 2021, the corporate had reported Rs 1,415.67 crore in consolidated income, with internet losses of Rs 114.6 crore.
Recently, Nykaa’s former finance chief
Arvind Agarwal joined PayU India as its chief monetary officer. India is PayU’s largest market. This 12 months, on account of a hunch in enterprise funding, a number of startups together with these within the fintech house have undertaken layoffs to scale back prices. These embody gold loans supplier Rupeek, which fired round 200 workers in June and Tiger Global-backed digital ledger platform OkCredit, which laid off 35-40 workers.