PayU’s Consolidated Revenue Stood At $497 Mn In H1 FY24: Prosus

Fintech major PayU saw its revenue surge 21% year-on-year (YoY) to $497 Mn in the first half of the financial year 2023-24 (FY24) from $412 Mn in H1 FY23, said parent company Prosus in its half-yearly financial report.

Consolidated trading loss narrowed 72.5% year-on-year to $22 Mn in H1 FY24 from $80 Mn H1 FY23.

PayU India recorded total revenues of $211 Mn for the period under review, recording a 15% increase over the same period last year. Currently, India accounts for 48% of PayU’s core payments revenues.

“Payments and Fintech recorded meaningful growth in the core payment service provider (PSP) business, driven by India payments, Turkey (Iyzico) and India credit. The consolidated trading loss narrowed due to improved profitability in Global Payments Organisations (GPO), lyzico and savings from new initiatives in PayU India,” Prosus said.

The core payments services provider (PSP) business grew Total Payment Volume (TPV) by 20% and delivered a trading profit margin of 2%.

Moreover, the Indian credit business grew its loan book by 66% with revenue up 31%.

PayU saw its revenue from core payments vertical surge 21% year-on-year (YoY) to $440 Mn in the H1 FY24 from $363 Mn in the same period a year ago.

Lending verticals namely LazyPay and Paysense saw their cumulative revenue surge 16% on a yearly basis to $57 Mn in the period under review.

It is to be noted that PayU agreed to sell its GPO business in H1 FY24, excluding Turkey and Red Dot Payments, to Rapyd, a fintech-as-a-service provider, for $610 Mn. After the sale, which is expected to close in the first half of calendar 2024, the core PSP business will constitute PayU India, Iyzico in Turkey and Red Dot Payments in south-east Asia.

“The Payments and Fintech segment operates profitable core PSP businesses, and a rapidly scaling credit business in India. It delivered a strong 1H24 result in the core PSP and credit business, with revenue growth and improved profitability, despite pending regulatory approvals in India that are also impacting peer PSPs,” Prosus said.

“The regulatory approvals relate to onboarding new online merchants while we continue to provide payment services to our existing online merchants,” it added.

PayU continues to be one of the few profitable Indian companies in Prosus’ kitty. Recently, the CEO of PayU India, Anirban Mukherjee, has been elevated to the position of CEO at PayU.

With an increased focus on the Indian market, PayU is also exploring options for a public listing of its domestic entities. PayU India intends to file its draft red herring prospectus (DRHP) with markets regulator SEBI in February for an initial public offering (IPO) of at least $500 Mn.

PayU claims to serve over 4,50,000 merchants, over 70 large banks via its paytech platform Wibmo, and more than 2 Mn customers with credit facilities in India.

Meanwhile, PhonePe recorded a revenue of INR 2,914 Cr in the financial year ended March 31, 2023, an increase of almost 77% from INR 1,646 Cr in FY22. Besides, Vijay Shekhar Sharma-led Paytm saw an over 31% jump in its operating revenue to INR 2,518.6 Cr in Q2 from INR 1,914 Cr in the year-ago period.

As per an Inc42 report, the potential market size for fintech in India is anticipated to reach $2.1 Tn by 2030. This growth is projected to occur at a compounded annual growth rate (CAGR) of 18% starting from 2022.