PayU India, the fintech arm of Dutch tech investor Prosus, posted a mixed set of numbers for FY25 as it grappled with regulatory headwinds and rising competition in the digital payments space.
While the company’s revenue grew 21.4 per cent year-on-year to $669 million, up from $551 million in FY24, its aEBIT (actual consolidated earnings before tax) loss widened to $44 million from $32 million a year earlier.
The business reached breakeven in the second half of the year and improved its aEBIT margin to -2 per cent from -8 per cent a year earlier.
Its credit business, operated under PayU Finance, also posted strong topline growth, with revenue rising nearly 60 per cent to $171 million, compared to $107 million a year earlier. Loan disbursals rose to $1.1 billion in FY25, with 23 per cent going to small- and medium-sized businesses. However, the unit’s aEBIT loss deepened to $32 million from $20 million, as higher credit losses and financial leverage weighed on margins. The credit loss ratio rose to 5.8 per cent in the second half, prompting a tightening of underwriting standards.
At the group level, parent company Prosus reported a 47 per cent increase in core headline earnings to $7.4 billion, compared to $5 billion in FY24. Core headline earnings exclude non-operational items and reflect earnings from ongoing business operations. Group revenue rose 21 per cent to $6.2 billion, driven by strong performances from key portfolio companies, such as iFood, OLX, iyzico, and PayU India.
Prosus CEO Fabricio Bloisi said India remains a top priority for the group, alongside Latin America and Europe. “After we succeed more in those three regions, we are going to expand to more than one or two regions,” he said on the earnings call.
Investments
The company has invested $8.6 billion in Indian start-ups so far, including IPO-bound Urban Company, Meesho, and Rapido. Its investment in Swiggy delivered a 23 per cent internal rate of return in FY25, while PayU India clocked 14 per cent IRR.