PayU India posts 21% revenue growth in FY25 as credit losses sink bottom line

PayU India, the fintech arm of Dutch technology investor Prosus, delivered a mixed performance in FY25 as it navigated a challenging regulatory environment amid heightened competition.

PayU India saw its aEBIT (actual consolidated earnings before taxes) loss increase from $32 million in 2024 to $44 million in 2025. Revenue, however, increased 21.41%—from $551 million in FY24 to $669 million.

The payments business posted a 12.16% year-on-year revenue growth to $498 million from $444 million, aided by deeper penetration among existing merchants and expansion in value-added services, Prosus said.

Despite intensified UPI competition compressing margins, the business reached breakeven in the second half of the year, improving its aEBIT margin to -2% from FY24’s -8%.

PayU’s India credit business also saw its aEBIT loss grow from $20 million in FY24 to $32 million in FY25. Consolidated revenue of the vertical increased by 59.81% from $107 million to $171 million.

The India credit business, operating under PayU Finance, experienced stronger momentum. Loan disbursements rose to $1.1 billion, with 23% directed to small- and medium-sized businesses.

The unit grew revenue by 60% to $171 million, but continued to post a -19% aEBIT margin due to elevated credit losses and the cost of financial leverage.

The credit loss ratio rose to 5.8% in H2, prompting a tightening of underwriting standards.

“We’ve taken decisive steps to strengthen our risk practices, and the improvement in recent loan cohorts demonstrates early traction,” the company said in its annual report.

Also Read

RBI’s surprise cut offers fintech lenders a breather amid credit crunch

In a bid to bolster its position in India’s fast-evolving payments infrastructure, PayU acquired a 70% stake in Mindgate Solutions, a real-time payments technology firm, for $68 million. The acquisition is expected to enhance PayU’s UPI capabilities and operational efficiencies.

Prosus reported a 47% rise in core headline earnings during the year ended March 31, 2025. The company, which has invested in Indian foodtech major Swiggy and online payment solutions firm PayU India, reported core headline earnings of $7.4 billion compared to $5.0 billion in FY24.

Core headline earnings refer to a company's earnings derived from its primary, ongoing business operations, excluding any one-time, non-recurring, or exceptional items. On a group level, the firm reported a 21% rise in annual revenue to $6.2 billion compared to $5.5 billion last year.

In its annual report, the company attributed the rise in revenue to strong growth in iFood, OLX, iyzico, and PayU India