“In line with the changing market dynamics, we at PayU are repivoting our Credit business strategy and sharpening focus on strategic priorities that will continue to drive success and growth for our business and enhance customer experience. This realignment is leading to some departures and we are dedicated to fully supporting all colleagues during this transition." said PayU spokesperson, without confirming the number of layoffs," PayU spokesperson had then said.

One of the sources had then said, "Fabricio Bloisi, who took over as CEO of Prosus earlier in July, was’t happy with the performance in India when he visited the country last month as the India business failed to improve profitability in FY24. The pressure to be profitable is too much so they are trying to cut costs from the business that is not generating returns for them.” 

According to Prosus’ annual report, its revenue from India –  the largest market in PayU’s payment service provider (PSP) business –  grew 11% to $444 million in FY24 despite being unable to onboard new merchants due to the noted embargo during the year. Revenue growth was driven by increasing volumes from existing merchants and growing value-added services such as affordability, it added. However, while its payments business in India achieved a 3% trading profit margin in FY23, this worsened to -3% in FY24 due to the change in merchant and payment method mix, it noted.

It added that it has continued investing and building new opportunities such as credit in India. "The credit business revenue has grown 12x since FY21, translating into a revenue CAGR of over 128%. This growth has been coupled with cost reductions, ensuring that the trading-loss margin continued to improve YoY," it explained.