Ex-PayU Executive Prashanth Ranganathan In Talks With Investors For New Start-Up Venture: Report

Updated on: 28 August 2023 5:26 pm

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Prashanth Ranganathan, Former PayU finance India chief executive, is in talks with investors to raise $20-$25 million for his new venture, The Economic Times reported quoting the sources aware of the development.

Ranganathan is expected to enter in the wealth-tech space, where his new venture will facilitate Indian parents to save funds for their child's tertiary education. Founder of consumer lending venture PaySense, which he sold to PayU in a deal worth $185 million, is advancing with a new deal to fundraise with Nexus Venture Partners, and US and Singapore-based Investment funds. Nexus was also funding his previous venture PaySense.

while the talk is midway the final details of investments are still not confirmed but the sources said that about $100 million is being discussed with the investors. Discussions are still at an early stage, people said to ET.

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Rangnathan's PaySense was acquired by Netherlands-based payment service provider, PayU, in 2020 which was the biggest domestic cash flow. He is anticipated to formally leave PayU in October after the stake sale and is expected to establish his second business by February of the following year.

In 2015, Rangnathan founded PaySense in Mumbai. He worked with PayPal for four years before starting PaySense, where he served as the company's head of product for Asia Pacific. With the successful acquisition of Truvie Security, a mobile payment security firm, and joined PayPal in 2011. He has played a key role in scaling up the regional credit company, Lazypay, for the large fintech company based in Amsterdam during his time at PayU.

RedSeer Consulting has estimated that the Indian wealth-tech market is expected to grow $ 20 billion in FY20 to around $63 billion by FY25. The estimated size of the worldwide wealth-tech market in 2019 was $189.4 billion, and by 2027, it is anticipated to grow to $722.0 billion.