PayU India’s Payment Revenue Grows 12% To $498 Mn In FY25

Update | June 23, 04:49 PM: The story’s headline has been edited to add the word payments.

Prosus-owned fintech platform PayU’s India payment revenue surged 12% to $498 Mn (around INR 4,319 Cr) in the financial year ended March 2025 (FY25), on the back of deeper penetration with existing merchants and expanding value-added services.

As per Prosus’ annual report for FY25, the platform’s India payment broke even in the second half of FY25. Meanwhile its adjusted earnings before interest and taxes (aEBIT) margin improved by 1 percentage point to -2% in the financial year under review.

“While revenue and margins improved, PayU India recorded a trading loss. We aim to restore its profitability,” the report added.

Notably, Prosus has also reportedly deferred public listing for PayU, citing focus on business improvement this year. As per a Reuters report citing company’s chief financial officer Nico Marais, the company won’t hit the public market in 2025.

While PayU India’s overall revenue surged 21% to $669 Mn in the fiscal under review, its overall aEBIT margin stood at -7%.

Notably, the company recently got approval from the Reserve Bank of India (RBI) to operate as a payment aggregator (PA). 

Founded in 2002 by Nitin Gupta, Shailaz Nag, Jose Velez, Martin Schrimpff, Arjan Bakker, and Grzegorz Brochocki, PayU offers digital payments and lending solutions. In 2011, ibibo launched PayU PG for websites to integrate ecommerce transactions with online payments, but the entity was demerged from the parent to form PayU India in 2014, with Gupta and Nag as its cofounders. 

The report further added that PayU India added 13,000 new merchants in FY25. 

Talking about PayU India’s credit arm PayU finance, the parent entity said that the company issued loans worth $1.1 Bn, with small and medium business lending contributing to 23%.

“We have pivoted our credit strategy to house partnerships, lending at checkout (consumers) and diversification from unsecured consumer to SMB lending,” the company added.

PayU’s IPO Delay

This is the second time that Prosus has decided to postpone PayU’s IPO. Earlier the company wanted to list PayU in 2024. However, those plans were postponed due to unknown circumstances and shifted to 2025.

However, this time the company started taking steps for its IPO. Several media reports suggested that PayU finalised Goldman Sachs as one of the lead bankers to helm the public issue.

Last month, the company also expanded its board of directors with three new appointments — Subhash Mundra and Manoj Kumar Agarwal as non-executive independent directors and Ashutosh Sharma as non-executive non-independent director.

In April, PayU also bagged INR 1,013 Cr Prosus via issuance of 13 Cr equity shares of face value of INR 10 each at a premium of INR 67.96 per share to raise

The company has been on an acquisition spree since its entry into the Indian market. Earlier this year, PayU acquired a 43.5% stake in payments infrastructure startup Mindgate Solutions to expand its presence in the real-time payments space in India.

Over the past decade, PayU has made significant acquisitions by snapping up fintech platform Citrus Pay, digital lending platform PaySense, and digital payment security and authentication solutions Wibmo.