PayU India Reports Strong Financial Growth in FY26

PayU India, the financial technology division of Prosus, announced a remarkable 20% year-on-year increase in revenue during the six months ending September 2025. Adjusted EBITDA margins improved significantly from -6% to breakeven, achieving profitability in Q2 FY26. PayU India generated a revenue of $397 million in H1 FY26, up from $331 million in H1 FY25, as detailed in the Prosus annual report.

Growth in Payments Sector

The payments segment was the primary contributor, with a 20% rise, reaching $301 million. This growth was driven by a staggering 55% increase in payment transactions, particularly due to UPI, alongside a stronger focus on value-added services (VAS) and software-as-a-service (SaaS) provisions in fraud risk, authentication, and security. These higher-margin services now represent 34% of PayU’s payments operations.

Credit Business Expansion

In the credit segment, PayU achieved 17% growth, totalling $96 million, aided by momentum in its newly deployed loan-originations system. The firm facilitated $651 million in loans during H1 FY26 by transitioning entirely to an asset-light, embedded lending framework. This strategic shift has allowed the division to substantially reduce losses and reach breakeven in Q2.

Full-Year Financial Overview

For the complete FY25 period, PayU posted $694 million in revenue, while its operating loss was noted at $45 million. In H1 FY26, the company reached adjusted EBITDA breakeven, a significant improvement from a 6% loss margin recorded the previous year. The payments sector reported a turnaround with a 5% adjusted EBITDA margin, whereas the credit division improved its performance from -20% to -3%.

Strategic Investments and Initiatives

PayU made a calculated investment in India’s UPI infrastructure by increasing its stake in Mindgate to 70.7% and launching UPINXT, a framework for issuing and acquiring payments for banks and merchants. Mindgate powers UPI systems for major banks, including SBI and HDFC Bank, collectively managing around 10 billion real-time transactions monthly.

Growing Partnerships and Regulatory Approvals

Prosus also underscored PayU’s expanding collaborations with firms like Swiggy, Meesho, and various SMB networks as it broadens its reach beyond online transactions. Recently, PayU secured integrated authorisation from the Reserve Bank of India (RBI) to function as a payment aggregator for online, offline, and cross-border transactions in accordance with the Payment and Settlement Systems Act.