PayU India’s Revenue Surges 12% In H1 FY25

SUMMARY

PayU India’s revenue soared 12% to $237 Mn in the first half of the financial year ending March 2025 (H1 FY25)

In the Prosus’ H1 FY25 report, PayU claims to have onboarded over 4,000 merchants in the period

PayU claims the growth in Q2 outpaced the Q1, which was majorly fueled by strong demand from financial services, government payments, and ecommerce

Prosus-owned PayU India’s revenue soared 12% to $237 Mn in the first half of the financial year ending March 2025 (H1 FY25).

In the Prosus’ H1 FY25 report, PayU claims to have onboarded over 4,000 merchants in the period.

In the same period, the company’s total payment value (TPV) rose by 25%.

It further claims that the growth in the second quarter (Q2) outpaced the Q1, which was majorly fueled by strong demand from financial services, government payments, and ecommerce.

However, revenue growth lagged behind TPV expansion due to lower take rates influenced by the increasing adoption of Unified Payments Interface (UPI).

Despite these challenges, PayU claims to be moving towards profitability. “The aEBIT margin at -5% is 2 percentage points lower than last period but showing improvement in recent months as we drive towards profitability,” the company said in a statement.

Meanwhile, PayU’s credit business in India saw a revenue surge of 91% to $82 Mn, driven by higher loan issuances and a growing loan book. Total loan issuances increased by 63% to $592 Mn, with small and medium business (SMB) lending contributing 15% of the total.

Although credit losses and provisions remain a challenge, the adjusted EBIT margin for the credit business improved to -23%, up from -35% in the same period last year. PayU continues to focus on building a high-quality loan portfolio while navigating an evolving regulatory environment.

PayU, which was founded by Nitin Gupta, Shailaz Nag Jose Velez, Martin Schrimpff, Arjan Bakker, and Grzegorz Brochocki in 2002, is owned by Prosus’ Nasper Group. Its Indian subsidiary, PayU India, was launched in 2011, with Nitin Gupta and Shailaz Nag as its cofounders.

Besides India, it provides payment and financial services across Latin America, Southeast Asia, Central and Eastern Europe and Africa.

Notably, the company has been focusing on bringing up its top line in the run up to its IPO plans.

In the fiscal year 2023-24 (FY24), PayU India’s revenue grew 11% year-on-year (YoY) to $444 Mn.

Meanwhile, it received an in-principle authorisation from the Reserve Bank of India (RBI) to operate as a PA in April 2024.

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