India’s leading payment gateway, PayU generated $444M in FY24. The revenue increased by 11% from $399M in the last financial year. However, the growth rate declined from 31% in FY23. PayU is the payments and fintech business of Prosus, one of the largest technology investors in the world.
PayU India, one of its biggest markets when it comes to payment services has contributed 46% to its revenue from this segment. It also contributed 60% to the Total Payments Volume (TPV) increasing 22% YoY.
As per Prosus, the reason for the growth in revenue was the surge in volumes from its existing merchant user base and increasing “value-added” services. Also, PayU’s consolidated revenue rose to $1.1B showing a 22%YoY growth. The main reasons for this surge are the success of its Payment Service Provider business in India and Turkey and the simultaneous expansion in the Global Payment Operations (GPO) business.
In January 2023, RBI ordered PayU to reapply for its payment aggregator publication license canceled due to the company’s complex corporate sector. Because of this, the firm did not overboard new merchants, and hence the growth rate declined. It was only after 15 months that PayU received an in-principle authorization from the Reserve Bank of India(RBI).
Along with payments, PayU India also provides credit services. The revenue from the credit business was $107M. These services include all credit services and personal loans to customers via the LazyPay app. India is the biggest market for PayU Global when it comes to digital payments. The firm expects the volume of peer-to-merchant payments to exceed $3 trillion and digital consumer credit to reach $130B in FY2030.
Globally, the company’s main payments service business grew 23% to $975M. It accounts for 88% of the firm’s overall revenue. In August 2023, PayU announced the sale of its group purchasing business excluding Red Dots Payments(South East Asia) and Iyzico(Turkey).
In India, PayU is home to 4.50,000+ merchants with over 100+ methods of payment and is one of the most preferred payment gateway for e-commerce merchants.
