StartupTalky

Tag: Prosus

  • The Fintech Business PayU is Being Considered for IPO by Prosus in 2025

    According to a November 13 media report, Prosus, which recently saw a healthy return on its investment in Swiggy at the food delivery startup’s initial public offering (IPO), plans to list PayU, its payments and fintech business in India, in 2025. Ervin Tu, the group chief investment officer for Prosus, was quoted in the report as saying that the listing might occur at a valuation between $5 billion and $7 billion.

    A renowned media outlet reports that UBS just increased PayU’s valuation from $3.7 billion to $4.2 billion, citing improved trading multiples in the global payments market. Listed in Amsterdam and a member of South Africa’s Naspers, Prosus is regarded as one of the largest long-term technology investors globally.

    PayU Was Planned to Get Listed in 2023

    Since late 2023, PayU had planned to go public at a valuation of $5 billion to $7 billion. It was permitted to function as a payment aggregator in April after just escaping a 15-month regulatory prohibition on hiring new merchants. For its primary payments function, it faces competition from companies like Walmart-owned PhonePe and Tiger Global-backed Razorpay. PayU also helps small enterprises and consumers get loans.

    Rapid Expansion of India’s Digital Payment Market is Attracting Investors

    According to Prosus’ 2024 annual report, retail digital transactions in India, one of the world’s fastest-growing digital payments markets, grew 44% year over year in FY24, while payment volume rose 20%.

    India is a “pillar” of the Dutch investor’s strategy, according to Tu. “We have great optimism about the future for India and for us.”

    His remarks follow the successful market debut of Swiggy, another portfolio business, on November 13. Prosus, which still owns a 25% share in the food and grocery delivery company, claimed in a statement that it had made $2 billion from its investment. Fabricio Bloisi, the CEO of Prosus, stated last month that he anticipates more of the companies in his Indian portfolio going public within the next 12 to 18 months. Among other Indian businesses, it owns shares in Meesho, an online marketplace, and Urban Company, a home services provider.

    Sriharsha Majety, the founder and group CEO of Swiggy, stated on the sidelines of the company’s successful initial public offering (IPO) that the Prosus team has been a crucial part of Swiggy’s path to reach this milestone, helping the business at every turn since it started working with it in 2017. Their steadfast faith in Swiggy’s mission has been essential to the company’s success in the quick commerce sector as well as its food and 1P delivery platforms. Swiggy has learnt a lot and garnered useful insights from Prosus’ vast global exposure to the food industry. Swiggy looks forward to strengthening its partnership and leveraging Prosus’ global insights and industry expertise as it continues to develop, expand, and change as a publicly traded company.

    PayU Collaborates With Amazon Pay Later to Provide Immediate Digital Credit
    A strategic alliance between PayU, a provider of digital financial services, and Amazon Pay Later will increase the availability of digital credit to millions of customers in India.
    StartupTalkyNitin Konde

  • Prosus Plans to Add More IPOs to Its Portfolio in India

    Dutch technology investor Prosus is still optimistic about the Indian market despite its unsuccessful bet on Byju’s, which was once the most valuable company in the country. Fabricio Bloisi, CEO of Prosus and Naspers, stated that the company will keep investing in India and is enthusiastic about the future of the nation. In a letter to shareholders on October 21, 2024, Bloisi stated that Prosus, the biggest investor in Swiggy, which is set to go public, also anticipates more Indian businesses in its portfolio to do the same over the next 12 to 18 months.

    Prosus, which is mostly owned by Naspers of South Africa, has invested in several Indian businesses, such as Meesho, Urban Company, and PharmEasy.

    Swiggy’s IPO a Master Stroke for Prosus

    “Swiggy declared its intention to go public. Our initial investment and effort in India is yielding positive results. In the upcoming 12 to 18 months, I anticipate seeing more of our investments in Indian initial public offerings,” Bloisi stated. In addition to filing for an IPO of INR 10,000 crore, Swiggy obtained shareholder approval to possibly increase the amount of its entire issuance to around INR 11,700 crore. The IPO is the largest startup IPO since Paytm’s INR 18,300 crore public offering in 2021, and it is anticipated to go live next month. After an absence of three years, a thriving Indian initial public offering (IPO) market has pushed a number of startups, including FirstCry and Ola Electric, to go public. Several other modern enterprises are also in queue for IPOs.

    In addition to opposing Byju’s rights issue, Prosus and a few other investors, such as Peak XV Partners and General Atlantic, have been involved in a legal dispute with the startup, bringing a suit against the management for harassment and mismanagement. Prosus wrote off its investment in Byju’s earlier this year due to insufficient information about the company’s liabilities, financial standing, and prospects. According to Bloisi, Prosus increased its e-commerce adjusted ebit by over $400 million in FY24 and is currently valued at $100 billion.

    Prosus cut its Byju’s valuation to $5.1 billion nearly a year ago, just after its representative quit from the board of Think and Learn Pvt. Ltd., the edtech startup’s parent business. Additionally, representatives from the Chan Zuckerberg Initiative and Peak XV Partners left Byju’s board.

    In November of that year, Prosus again reduced its Byju valuation to $3 billion. Given how widely education is being adopted digitally worldwide, Prosus is still very interested in the field of education. However, during the company’s earnings call on June 24, a Prosus spokesperson stated that all three of the education firms in its portfolio—Stack Overflow, Skillsoft, and Byju’s—had not met the organisation’s goals. “Over the past year, our performance has been hindered by Byju’s.”

    Prosus to Provide $60 Million Investment to Rapido
    Prosus plans a $60M investment in Rapido, combining primary and secondary share sales. This funding is part of Rapido’s allows early investors partial exits.
    StartupTalkyNitin Konde

  • Prosus to Provide $60 Million Investment to Rapido

    According to reports, Dutch investment firm Prosus is nearing $60 million (INR 503 Cr) in funding for Indian ride-hailing unicorn Rapido through a combination of main and secondary share sales. According to insiders, Rapido’s current $200 million funding round will include this additional funding.

    The conditions of the agreement have reportedly already been decided, according to many media reports. “Prosus plans to invest $60 million in Rapido. Sources familiar with the development said, “The deal’s parameters have been finalised, and it will also allow early supporters to make partial departures.” Rapido’s Series E investment will come to an end with this $60 million round. The company’s present valuation is projected to remain unchanged despite the investment.

    Rapido Joining the Unicorn Club

    After last month’s revelation that Rapido had raised $200 million in Series E financing led by current investor WestBridge Capital, this new development is even more significant. With a $1.1 billion valuation, that round catapulted the Bengaluru-based business into the unicorn club.

    Rapido was established in 2015 by Aravind Sanka, Pavan Guntupalli, and Rishikesh SR. It provides bike taxis, auto rides, and most recently, cab services in a few locations. Furthermore, the platform uses Rapido Local to enable peer-to-peer delivery. The firm has raised approximately $625.75 million to date thanks to the support of a number of well-known investors over the years, including Swiggy, TVS Motor Company, and Shell Ventures.

    Rapido has encountered financial difficulties in spite of its expansion. The company saw a 50% year-over-year increase in net loss to INR 674.5 Cr in the fiscal year 2022-2023 (FY23). But compared to FY22, when it made INR 144.8 Cr, its operational revenue increased to INR 443 Cr.

    Prosus Expansion Plans in India

    As the Dutch investor has been increasing its presence in the Indian market, this new investment from Prosus arrives at a perfect time. It was recently revealed that Prosus is thinking about making a $30 million secondary investment in the hyperlocal services platform Urban Company, with Bessemer Venture Partners receiving a portion of the proceeds. Prosus demonstrated its continued dedication to India in August when it invested $350 Cr in Bluestone’s INR 900 Cr pre-IPO financing.

    The investor is also eager to profit from the foodtech giant Swiggy’s impending initial public offering (IPO), in which it intends to sell 11.8 Cr of shares as part of the offer for sale (OFS) component.

    About Prosus

    Prosus is one of the biggest technological investors and operators in the world, as well as a global consumer internet organisation. In areas like Europe, India, and Brazil, the group is concentrated on developing significant businesses in the online ads, payments & fintech, food delivery, and education technology sectors.

    It supports regional business owners that create worthwhile goods for over 2 billion consumers while fostering the development of their local communities. Prosus gives its employees the tools they need to advance their careers and learn new skills.

    Investment of $30 Million to Be Made by Prosus in Urban Company
    One of the biggest technology investors in the world, Prosus, is increasing its position in the home services platform Urban Company by almost double.
    StartupTalkyNitin Konde

  • Investment of $30 Million to Be Made by Prosus in Urban Company

    One of the biggest technology investors in the world, Prosus, is increasing its position in the home services platform Urban Company by almost double. The Netherlands-based investor wants to increase its holdings before the business goes public early next year.

    According to a media report, Prosus, which has funded some of the largest startups in the nation, including Swiggy, Meesho, and Eruditus, among others, will be investing roughly $30 million in an all-secondary transaction, providing Bessemer Venture Partners a partial exit. The deal will be closed at a fixed valuation of $2.6 billion. Note that secondary transactions usually occur at significantly lower valuations.

    Accel Partners and Elevation Capital

    Two of Urban Company’s initial investors, Accel Partners and Elevation Capital, sold a portion of their shareholding to Dharana Capital in July in an all-secondary deal valued at approximately INR 400 crore. The sources claim that while both companies were thinking about selling additional stakes, they have now shelved those plans and will wait for the company’s IPO the following year.

    Even the possibility that Steadview was considering a sale is unfounded, according to a media report. Only Bessemer is offering the biggest portion and minor secondaries for Elevation and Acceleration. The report went on to say that Urban Company is one of the few good assets and that Prosus has an opportunity to take full advantage of it by doubling down its investment, and watch its valuation rise at the IPO the next year.

    India’s Venture Capital Landscape

    Recent trends in India’s venture capital scene indicate that when their initial fund cycles are coming to an end, early-stage VCs are choosing to quit their portfolio businesses. In April, The CapTable published a detailed article about how venture capitalists (VCs) were seeking to sell their holdings in secondary transactions. 

    However, Prosus’ decision to raise its ownership in Urban Company follows a significant multi-hundred million-dollar profit from its investment in Swiggy, a rapid commerce and food delivery company getting ready for an IPO later this year. Despite suffering large losses on two of its largest Indian assets, Pharmeasy and Byju’s, Prosus is now focussing on growing its other purportedly profitable businesses. Prosus also wants to expand the scope of its holdings outside of tech ventures. Prosus made a $100 million investment in Vastu Housing Finance in September. It also planned to spend about $40 million on the jewellery platform Bluestone.

    The Urban Company was founded by Abhiraj Bhal, Raghav Chandra, and Varun Khaitan about ten years ago. It last received main funding in 2021 from a variety of investors, including Prosus, Steadview, Dragoneer, and Tiger Global Management. At the time, the corporation was worth $2.6 billion. It has started discussions about an IPO with a few investment institutions.

    Urban Company: Transforming Home Services Globally | Valuation | Founder | Funding
    Discover Urban Company, a leading platform revolutionizing home services with a dedicated workforce and global reach. Learn about Urban Company’s startup story, Founder, net worth, funding, and more.
    StartupTalkyShevaughn Pimenta