PayU India clocks $397 Mn revenue in H1 FY26

PayU India, the payments and fintech arm of Prosus, reported 20% year-on-year revenue growth during the six months ended September 2025, while adjusted EBITDA margins improved from -6% to breakeven, turning profitable in Q2 FY26. 

PayU India’s revenue from operations increased to $397 million in H1 FY26 from $331 million in H1 FY25, according to the Prosus annual report.

The payments business remained the main driver, posting 20% growth to $301 million. The expansion was fuelled by a 55% jump in payment transactions, led by UPI, along with a deeper push into value-added services (VAS) and software-as-a-service (SaaS) offerings in fraud risk, authentication, and security. These higher-margin layers now account for 34% of PayU’s payment business.

Meanwhile, its credit business recorded 17% growth to $96 million, supported by traction in its new loan-originations engine. PayU originated $651 million in loans during H1 FY26 as it shifted fully to an asset-light, embedded lending model. This pivot helped the vertical narrow losses and break even in Q2.

For the full FY25 period, PayU reported $694 million in revenue, while its operating loss stood at $45 million. 

In H1 FY26, the company reached adjusted EBITDA breakeven, compared to a 6% loss margin a year ago. Its payments unit swung to a 5% adjusted EBITDA margin, while the credit business improved sharply from -20% to -3%.

PayU also made a strategic bet on India’s UPI infrastructure by raising its stake in Mindgate to 70.7% and rolling out UPINXT, an issuing and acquiring stack for banks and merchants. Mindgate powers UPI systems at SBI, HDFC Bank, and others, collectively handling around 10 billion real-time transactions a month.

Prosus also highlighted PayU’s growing partnerships with Swiggy, Meesho, and SMB networks as it widens its scope beyond online payments. Last week, PayU received integrated authorisation from the Reserve Bank of India (RBI) to operate as a payment aggregator for online, offline, and cross-border transactions under the Payment and Settlement Systems Act.