PayU India FY25 financials reveal a solid 12% year-over-year revenue growth to $498 million (₹4,317 crore). While the company achieved operational breakeven in payments during the latter half of the year, its credit arm posted notable losses, reflecting ongoing challenges in India’s evolving fintech sector.
FY25 Financial Highlights
- Total Revenue: $498 million (₹4,317 crore)
- Year-on-Year Growth: 12%
- Adjusted EBIT Margin (overall): –2%
- Payment Business: Broke even in H2 FY25
- PayU Finance (Credit Division): –19% EBIT margin due to credit loss provisions
What Worked for PayU in FY25
- Strong Payment Volumes: Robust merchant onboarding and increased transaction volumes fueled the 12% revenue increase.
- Operational Efficiency: Cost optimization helped the payment division reach breakeven in the second half.
- Focus on Compliance & Exit: PayU India exited non-core geographies and emphasized regulated markets, aligning with global strategies from parent company Prosus.
Challenges in Credit Lending
While payments showed resilience, the credit division (PayU Finance) reported a significant negative EBIT margin of –19%. This was driven by:
- Higher credit loss provisions
- Continued scaling efforts across lending products
- Regulatory pressure and cautious borrowing trends in India
Strategic Moves in FY25
- Sale of Global Payments Business: Prosus, PayU’s parent company, sold its global payments units (excluding India) to Rapyd for $610 million in late 2023.
- India Focus: India now accounts for ~90% of PayU’s total revenue, making it the strategic centerpiece of PayU’s global business.
- Buy-Now-Pay-Later (BNPL) Focus: Expansion in consumer lending services, though margins are still under pressure.
What’s Ahead in FY26
- Profitability Push: Full-year breakeven targeted in FY26 for both payments and lending.
- Growth in Regulated Lending: PayU aims to expand in secure, RBI-compliant credit offerings.
- Fintech M&A Outlook: Analysts expect PayU India to eye local acquisitions to reinforce its market dominance.
