PayU India, the payments and fintech subsidiary of Prosus, reported 20% year-on-year revenue growth during the six months ending September 2025, while adjusted EBITDA margins rose from -6% to breakeven, turning profitable in Q2 FY26.
Key Highlights
- PayU India posted strong performance with $397 million revenue in H1 FY26, reflecting significant growth momentum.
- Revenue increase highlights rising digital payments adoption and PayU’s expanding footprint in India’s fast-growing fintech sector.
According to the Prosus annual report, PayU India's operating revenue rose from $331 million in H1 FY25 to $397 million in H1 FY26.
The payments industry remained the key engine, reporting 20% increase to $301 million. In addition to a stronger push into value-added services (VAS) and software-as-a-service (SaaS) offerings in fraud risk, authentication, and security, the expansion was driven by a 55% increase in payment transactions, spearheaded by UPI. Currently, 34% of PayU's payment business comes from these higher-margin tiers.
With the help of its new loan-originations engine, its credit division saw a 17% increase to $96 million. PayU fully transitioned to an asset-light, embedded lending model during H1 FY26, originating $651 million in loans. The vertical was able to break even and reduce losses in Q2 because to this pivot.
PayU reported $694 million in sales and $45 million in operating loss for the entire FY25 period.
The business achieved adjusted EBITDA breakeven in the first half of FY26, as opposed to a 6% loss margin the previous year. The credit company significantly improved from -20% to -3%, and its payments segment flipped to a 5% adjusted EBITDA margin.
By increasing its ownership in Mindgate to 70.7% and launching UPINXT, an issuing and acquiring stack for banks and merchants, PayU also placed a calculated risk on India's UPI infrastructure. UPI systems of SBI, HDFC Bank, and other banks are powered by Mindgate, which manages about 10 billion real-time transactions every month.
Also Read: PayU Raises Stake in Mindgate to 70%
As PayU expands its reach beyond online payments, Prosus also emphasized its expanding alliances with Swiggy, Meesho, and SMB networks. The Reserve Bank of India (RBI) granted PayU integrated authorization this week to function as a payment aggregator for offline, internet, and international transactions in accordance with the Payment and Settlement Systems Act.
