Prosus-owned fintech platform PayU India’s revenue jumped 12.5% to $781 Mn (about ₹7,384 Cr) in FY26 from $694 Mn posted in the previous year
PayU India’s credit business’ top line grew 19% to $204 Mn from $171 Mn in FY25, turning adjusted EBITDA profitable in FY26
Prosus noted in its report that PayU exited negative margin portfolios in H2, impacting revenue growth during the period
Prosus-owned fintech platform PayU
India’s revenue jumped 12.5% to $781 Mn (about ₹7,384 Cr) in FY26 from $694 Mn posted in the previous year.
According to Prosus’ annual report for FY26, the payments service provider also turned adjusted EBITDA positive in the second half of FY26 (H2 FY26). Its adjusted EBITDA improved to $19 Mn during the period under review compared to an adjusted EBITDA loss of $6 Mn in H2 FY25. The adjusted EBITDA number stood at $18 Mn for the entire FY26.
Adjusted EBITDA margin stood at 5% in H2 FY26 and at 2% for the entire FY26. Prosus noted in its report that PayU exited negative margin portfolios in H2, impacting revenue growth during the period.
The revenue of PayU India’s payments vertical grew 10% to $577 Mn in FY26 from $523 Mn in the previous year. Adjusted EBITDA for the vertical stood at $12 Mn, with a 2% adjusted EBITDA margin. As per Prosus, higher margin services are gaining traction, with value-added services (VAS) and SaaS revenue contributing 33% of payments revenue.
Meanwhile, its credit business’ top line grew 19% to $204 Mn from $171 Mn in FY25. The credit business also turned adjusted EBITDA profitable in FY26, posting a profit of $6 Mn compared to -$28 Mn adjusted EBITDA loss in FY25.
Founded in 2002, PayU acts as the digital payments and lending arm of Prosus. PayU India has two businesses – payments and digital lending. While it charges a commission for processing digital payments, the digital lending vertical provides unsecured personal loans to consumers and business loans to SMBs. It provides the loans via its NBFC PayU Finance, while operating LazyPay as its buy-now-pay-later (BNPL) and personal loans platform.
As per Prosus, PayU India currently accounts for around 25% of the country’s online payments industry revenues, while having $682 Mn in assets under management under its credit arm.
During the year, PayU raised ₹302 Cr from its parent Prosus to shore up the credit business, Inc42 exclusively reported in July 2025. It also received an ‘integrated authorisation’ from the RBI in November last year to operate as a payment aggregator across online, offline, and cross-border transactions. It received final authorisation to operate as a domestic payment aggregator earlier in the year.
The fintech player has been eyeing the public markets for years now, postponing it most recently in July last year to focus on growth and profitability. The company had provided a 6-12 month timeline for the listing back then. It had set a target of September 2025 for its credit vertical to breakeven, which has now been achieved as per its latest annual report.
Prosus said PayU India’s overall financial services costs increased in FY26, driven primarily by increased credit issuance.
Apart from PayU India, Prosus owns stakes in multiple leading startups in India, including Swiggy, Rapido, Meesho, ixigo, Urban Company, Dehaat, ElasticRun, among others. In FY26, it continued to double down on some of these companies, including through additional stake acquisitions in consumer tech giants Swiggy and Rapido.
Prosus lost “subsequent influence” in Meesho post its stock market listing during the fiscal year. It sold shares worth $7 Mn during the IPO, and recognised a gain of $831 Mn as fair value based on its remaining stake.
The company is pushing for cross-platform collaboration within group companies, resulting in PayU’s payments and lending integration across consumer platforms like Swiggy, Meesho and ixigo.
As per Prosus, since integrating Meesho’s merchant and consumer-lending with PayU India, loan originations worth $2.1 Mn have been recorded. PayU has also processed gross merchandise value worth $5 Mn on Swiggy, while UPI GMV processed on ixigo stood at $1.5 Mn.
At the same time, the investment firm has been ramping up its AI capabilities to increase revenue generation from portfolio companies. As part of its AI-first strategy, Prosus is launching life assistants, like Swiggy’s concierge service Crew, and offering AI agents to partner businesses to improve growth and automation.
It is also working on building large commerce models, which will utilise transaction data under the company to power internal and customer-facing applications and agents, while improving synergies within group companies. This is still a work in progress in India, Prosus said.
Source: Inc42 - Startups
