PayU India has reported its first full-year operating profit in FY26, achieving a major milestone after years of investing heavily to expand its payments and lending businesses. The Prosus-owned fintech company posted revenue of $781 million, up 13% year-on-year, while reporting a positive adjusted EBITDA of $18 million for the first time. Its adjusted EBIT loss also reduced sharply by 80% to $10 million, showing a significant improvement in operational efficiency.
The payments business remained PayU’s biggest revenue contributor, generating $577 million, around 74% of the company’s total revenue. During FY26, PayU processed around $90 billion in total payment volume (TPV), a 15% increase from the previous year, while the number of transactions jumped 49%. The sharp rise in transactions reflects the continued growth of UPI payments, online shopping, bill payments and quick-commerce platforms.
The payments division’s adjusted EBITDA also increased four-fold to $12 million, helped by the company’s decision to stop serving several low-margin merchant segments. According to Prosus, PayU now accounts for almost 25% of India’s online payments industry revenue.
The company’s credit business also recorded a strong turnaround. Revenue from lending operations grew 19% to $204 million, while adjusted EBITDA improved to $6 million, compared with a $28 million loss in FY25. This improvement came after PayU shifted to an asset-light lending model, where loans are provided in partnership with banks and financial institutions instead of being funded from its own balance sheet. At the same time, the company’s net loss rate improved to 4% from 5% a year earlier.
PayU also strengthened its position in India’s digital payments infrastructure through its subsidiaries Mindgate and Wibmo. According to Prosus, these businesses now help process around 50% of all UPI transactions and about 75% of India’s credit card transactions. During the year, the company also developed its own third-party application provider (TPAP) technology stack and a dedicated person-to-merchant (P2M) UPI switch, which are expected to improve transaction success rates and support new payment products.
The company’s performance also showed growing business synergies within Prosus’ India portfolio, which includes Swiggy, Meesho, Rapido and ixigo. During FY26, the value of payments processed by PayU for Swiggy increased five times compared with the previous year. Its partnership with Meesho helped more than double consumer and merchant loan originations within nine months, while payment volumes for ixigo through UPI increased 50% within just one month. Prosus also expanded its investments by raising its stake in Rapido to around 23.5% and acquiring a 16.24% stake in ixigo, allowing PayU to offer payments, lending and financial services across a larger digital ecosystem.
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Ashutosh is a Senior Writer at The Tech Portal, largely reporting on new tech, and intersection of technology and business. Ashutosh’s career spans across nearly a decade of technology writing across multiple platforms and languages.
