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PayU India's FY25 revenue up 24% to $669 million, but still chasing profit
23 Jun 2025, 07:14 PMPayU India's adjusted earnings before interest and taxes (EBIT) loss rose by 38% to $44 million during FY25 from $32 million in FY24.
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Indian digital payments and lending firm PayU India recorded 24% growth in overall revenue to $669 million in the financial year ended March 2025.
However, PayU India's adjusted earnings before interest and taxes (EBIT) loss rose by 38% to $44 million during FY25 from $32 million in FY24, according to the annual report released by Dutch technology investor Prosus, which owns PayU India.
PayU India's revenue from payment services increased by 12% to $498 million in FY25 and its total payment volume (TPV) rose by 14%.
"India Payments witnessed steady progress in profitability despite competitive intensity and a higher unified payments interface (UPI) mix resulting in lower take rates," the report noted.
It added that despite these headwinds, India payments reached breakeven during the second of the financial year (October-March) and improved its adjusted EBIT margin by 1 percentage point to -2% for FY25.
"To accelerate business growth, we have reorganised the payments business with dedicated teams focusing on key account management, acquiring new customers in existing segments as well as forging new partnerships," Prosus stated.
PayU India's lending business' income rose by 60% to $171 million in FY25 but its adjusted loss increased by 70% to $34 million.
Its lending unit issued loans of $1.1 billion during the financial year with SMB lending contributing 23% of the total. The loan book at the end of March 2025 stood at $558 million compared to $468 million a year earlier, it said.
"Revenue grew 60%, supported by growth in AuM and diversification to SMB lending, while the adjusted EBIT margin at -19% was driven by increased costs linked to higher financial leverage and larger losses from the consumer loan book. In response, the business strengthened underwriting practices, which resulted in improved performance in loans issued thereafter, better underlining the business’ adaptability and long-term potential," it explained.
The report also noted that PayU India acquired real-time payments technology business Mindgate Solutions for $68 million during the financial year. It said Mindgate will enhance PayU’s offering and improve its operational efficiencies through integration of the business’ technology and UPI offerings.
"PayU acquired a 70% economic interest and accounts for Mindgate as a subsidiary," it added.
In January, The Head and Tale had first reported about PayU India's acquisition of Mindgate.
Last month, The Head and Tale was also the first to report about the Reserve Bank of India's approval to allow PayU Payments to operate as a payment aggregator.
Earlier this month, The Head and Tale reported that Sudhir Sehgal, who had stepped down as chief business officer at PayU, was set to join Paytm Payments Services Ltd. Sehgal's exit from PayU was part of a string of leadership departures at the Prosus-owned company in recent months.
Separately, the Reuters, citing Prosus's chief financial officer, said that it is not planning to list PayU India this year.
Meanwhile, other fintech firms in India such as Pine Labs and PhonePe are expected to file draft papers with the market regulators within the next few months.
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