Key Points

Its credit business also reported deeper losses, with aEBIT loss increasing from $20 million in FY24 to $32 million in FY25, according to Prosus' latest annual report.

The rise in losses comes despite strong revenue growth in both the payments and credit segments.

The company's overall revenue jumped 21.41 per cent year-on-year (YoY), rising from $551 million in FY24 to $669 million in FY25.

PayU's core payments business contributed $498 million to this figure, up 12.16 per cent from $444 million previous fiscal.

This growth was supported by stronger engagement with existing merchants and higher demand for value-added services, although stiff competition in India's fast-growing UPI ecosystem continued to weigh on margins.

Despite these challenges, PayU's payments vertical showed signs of improvement, reaching breakeven in the second half of the year.

Its aEBIT margin improved from -8 per cent in FY24 to -2 per cent in FY25, as per the company's latest annual report.

The credit business, operated under PayU Finance, grew rapidly, with revenue rising 59.81 per cent to $171 million from $107 million a year ago.

The unit disbursed $1.1 billion in loans during the year, with 23 per cent going to small- and medium-sized businesses.

However, this growth came at a cost. The credit loss ratio spiked to 5.8 per cent in the second half, resulting in a (-)19 per cent aEBIT margin for the vertical.

In response, the company has tightened its underwriting standards to reduce risk. "We've taken decisive steps to strengthen our risk practices, and the improvement in recent loan cohorts demonstrates early traction," the company said.

As part of its strategy to strengthen its foothold in India's digital payments space, PayU acquired a 70 per cent stake in Mindgate Solutions for $68 million.

Mindgate is a real-time payments technology company, and this acquisition is expected to enhance PayU's UPI capabilities and operational efficiency.

- IANS