Payments and lending platform PayU India's revenues grew 38 percent year on year to $183 million in the first half of the financial year 2022-23, driven by increased digitisation in retail, parent company Prosus said in its earnings presentation on November 23.
India is the largest market for Prosus' payments and financial services vertical and contributed 61 percent to PayU's total payment volumes (TPV), up from 54 percent last year.
PayU India recorded a TPV of $28 billion in the first six months of FY23, a jump of 48 percent from $18.9 billion during the year-ago period.
Prosus said India's travel and hospitality segment growth bounced back to pre-Covid-19 levels also aided to the growth in the market."During the period, we continued to scale our existing segments, including enterprise as well as small and medium businesses. We also expanded our focus to newer segments such as government, risk-based authentication
services, omnichannel, data science and non-MDR (merchant discount rate) products," Prosus said.
PayU India saw strong progress as margins improved in the core payments business as well as credit, it said.
PayU businesses’ consolidated revenues grew 33 percent to $412 million, driven by growth in payments in India and Turkey, and a scaling credit business in India.
On November 15, PayU India said its platform saw a 31 percent jump in digital transactions during the festival period as compared to the previous year.
At a group level, Prosus saw a 37 percent year-on-year decline in trading profits ie earnings from operations to $1.4 billion. Revenues grew by 9 percent to $16.5 billion.
BillDesk deal termination
PayU's announcement of the acquisition of payments gateway BillDesk for $4.7 billion in August 2021 and the subsequent termination of the deal in October 2022 have been the highlight of the company's last year in India.
In its earnings announcement, Prosus did not share more details on the termination of the deal other than the statement that was released when the agreement was junked in October.
"In India, PayU eventually secured competition commission approval for the acquisition of BillDesk. However, certain conditions precedent were not fulfilled by the 30 September 2022 long-stop date, and the agreement terminated automatically. Accordingly, the proposed transaction will not be implemented," the Dutch technology investment company said.
Prosus remains committed to the Indian market and to growing its businesses in the region, the company added.
Impact of digital lending norms
In the past six months, PayU India's lending and credit enabling arm LazyPay took after the Reserve Bank of India (RBI) released new lending norms on August 10.LazyPay, like Slice and Uni, used to enable lending through a co-branded prepaid card with State Bank of Mauritius India but had to do away with them to adhere to the norms.