Fintech company PayU on Friday announced it will merge the platform LazyPay and PaySense to construct a full-stack virtual lending platform in India. PayU has acquired virtual credit score start-up PaySense for $185 million.

Moreover, PayU will inject as much as $200 million in the newly created entity as equity capital. Around $65 million of the overall amount may be right now invested, even as the balance corpus might be infused over the next 24 months to develop its loan ebook, PayU said.

As a part of the deal, Prashanth Ranganathan, the current CEO of PaySense will lead PayU's credit business in the country as the CEO of the new enterprise.

PaySense’s Prashanth Ranganathan and PayU’s Siddhartha Jajodia

PayU’s Jajodia said PaySense and LazyPay will likely explore building new offerings, such as credit for small and medium businesses. He did not rule out the possibility of getting stakes in more fintech startups in the future. PayU has already invested north of half a billion dollars in its India business. Last year, it acquired Wibmo for $70 million.

“At PayU, our ambition is to build financial services using data and technology. Our first two legs have been payments [processing] and credit. We will continue to scale both of these businesses. Even this acquisition was about getting new capabilities and a strong management team. If we find more companies with some unique assets, we may look at them,” he said.