Prosus' PayU India continues in the red in FY25; payments revenue jumps 14% to Rs 4,135 crore

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PayU India ended FY25 with a loss from its main operations, even as both its payments and credit verticals posted strong revenue growth, according to parent company Prosus’ FY25 financial disclosures.

Total revenue from India stood at $669 million (Rs 5,548 crore) in FY25, up 24 percent year-on-year, according to Prosus' consolidated financial results.

“While revenue and margins improved, PayU India recorded a trading loss (negative aEBIT). We aim to restore its profitability,” Prosus said in its report for the year ended March 31, 2025.

A trading loss (or negative Adjusted Earnings Before Interest and Taxes, aEBIT) means the company spent more running its business than it earned, even after adjusting for one-time or non-cash items. In simple terms, PayU India lost money from its core operations despite rising revenues.

The company’s India payment business reported revenue of $498 million (Rs 4,135 crore), a 14 percent year-on-year increase. Prosus noted that total payment volume (TPV) rose 17 percent, led by growth in financial services, government segments, airlines, and food delivery, among others.

“India Payments witnessed steady progress in profitability despite competitive intensity and a higher unified payments interface (UPI) mix resulting in lower take rates,” the report said.

While the payments unit reported a 2 percent operating loss margin for the full year, it managed to break even in the second half (H2 FY25).

To drive future growth, Prosus said it reorganised the business with teams focused on managing large clients, getting new customers, and building partnerships.

Credit business revenue up 63%, losses widen 

PayU India’s credit business (PayU Finance) disbursed $1.1 billion (Rs 9,130 crore) in new loans, with 23 percent of that going to small and medium businesses (SMBs). The loan book stood at $558 million (Rs 4,631 crore) as of March 2025, up from $468 million a year earlier.

Revenue from the credit business grew 63 percent, helped by more loans and expansion into SMB lending. However, the unit posted a 19 percent operating loss margin, hurt by higher borrowing costs and more losses from consumer loans.

In response, Prosus said the business strengthened its underwriting practices, resulting in improved performance in newly issued loans.

"We have pivoted our credit strategy to house partnerships, lending at checkout (consumers) and
diversification from unsecured consumer to SMB lending. The goal is to build a more resilient credit portfolio, with focus on increasing operating leverage," the report notes.

Stake in Mindgate increased to 70%

In March, PayU acquired a 70 percent stake in Mindgate Solutions, a company that provides real-time payments technology and powers UPI infrastructure for banks and businesses. The total deal value is $140 million, split into two parts-$68 million was paid upfront for a 43.5 percent stake, which gave PayU control, and another $72 million will be paid based on Mindgate’s performance, the report notes.

Prosus also said PayU is expected to buy the remaining 30 percent in the future under a pre-agreed option. The deal is aimed at strengthening PayU’s product offering and boosting efficiency by integrating Mindgate’s payments technology.

While the acquisition happened at the end of FY25, Prosus noted that if it had taken place earlier in the year, it would have added $40 million in revenue and $5 million in net profit to the group’s numbers.