PayU Finance Partners with Swiggy to Offer Credit to Restaurants

PayU Finance, the NBFC arm of PayU, and Swiggy, India's leading food delivery platform, has announced a strategic partnership at the Global Fintech Fest 2025. Both companies joined hands to launch an innovative embedded credit solution for Swiggy's restaurant partners. This collaboration addresses the critical financing challenges faced by the HORECA (Hotel, Restaurant, Catering) segment by embedding credit facilities directly within the Swiggy ecosystem and eliminating traditional lending barriers. 

The solution offers customized unsecured credit solutions of up to ₹25 lakhs by PayU Finance, leveraging Swiggy’s network insights, with flexible repayment through an Equated Weekly Installment (EWI) model, starting at 18% per annum with zero foreclosure penalties. Restaurant partners can apply for a loan by visiting the 'Instant Loan' section on the Swiggy Partner app, executed and processed through the PayU platform and network, where the complete end-to-end lending journey, from application to disbursal takes place.

PayU Finance's proprietary underwriting models make rapid credit decisions without requiring extensive documentation such as bank statements or ITRs. The EWI structure aligns repayments with restaurants' weekly Swiggy payouts, significantly improving cash flow management while providing unprecedented flexibility in loan management.

“This partnership is a transformative step for India’s restaurant ecosystem,” said Deepak Mendiratta, CEO, PayU Finance. “By leveraging the strength of the Prosus ecosystem, combining Swiggy’s deep network  insights with PayU’s advanced underwriting capabilities, we are not just providing credit, but building the financial infrastructure to fuel the next phase of growth for India’s vibrant food service industry. Through this collaboration, we are targeting an Annualized Run Rate of ₹300 crore in disbursals in the next FY, with a vision to exceed ₹1000 crore within three years.”

“Our restaurant partners are the backbone of India’s food delivery revolution, and this collaboration      with PayU Finance will unlock unprecedented growth opportunities,” said Ajit Panigrahi – VP - Financial Services, Swiggy. “With over 2.5 lakh restaurant partners on our platform, we expect this embedded credit solution to significantly boost restaurant growth by enabling our partners to invest confidently in expansion, equipment and innovation. We are committed to building a comprehensive financial ecosystem that will support the long-term success of every restaurant partner."

This collaboration is expected to significantly impact India’s restaurant industry by providing formal credit access to establishments that have historically relied on informal financing sources. Building on PayU Finance’s success in empowering over 3.5 lakh merchants with tailored credit solutions, this partnership will amplify PayU Finance’s reach and benefit Swiggy by creating a transformative impact on the HORECA segment.