PayU India Targets September Profitability for Credit Business
PayU India, a digital payment and credit company, aims to turn its credit business profitable by September. The company, founded in 2011 and operating as a subsidiary of Prosus, recently raised capital to fuel its growth.
PayU India's recent financials show strong progress. In FY25, the company's total revenue surged to $669 million, a 21% increase from the previous year. The lending business, in particular, witnessed a 60-63% jump in revenue to $171 million. PayU disbursed loans worth $1.1 billion during the same period.
The company received final authorisation to operate as a payment aggregator in May 2025. This, coupled with the Reserve Bank of India lifting a 15-month embargo on merchant onboarding in April 2024, has boosted PayU's recovery. The payments unit even reached breakeven in the second half of FY25.
To achieve profitability, PayU India has tightened its underwriting standards and is shifting its focus towards SMB lending and embedded finance. The company raised Rs 302 crore (approximately $35 million) from its Dutch parent Prosus to support these efforts. The capital infusion was facilitated through the issuance of 4.9 crore equity shares to MIH Payments Holdings B.V.
PayU India's aggressive growth strategy and focus on profitability have shown promising results. With the recent capital infusion and strategic shifts in its lending business, the company is well-positioned to achieve its goal of making its credit business profitable by September.
Read also:
- West Virginia Governor's Revived Board Sparks Legal Concerns Amidst US Clean Energy Push
- Trump and Xi speak over the phone, according to China's confirmation.
- Unlawful MMO gold peddler cultivates around half a million dollars in income, triggering a tax dispute, followed by developers unveiling strategies to clamp down on real-world transactions
- Prices of transit tickets in Berlin and Brandenburg are on the rise
