PayU's Revenue Up By 21% In India Credit Business, Eyes IPO Within Next 12 Months

The size of the company's loan book expanded by 66 per cent to USD 338 million by the end of H1FY24

PayU is gearing up for an initial public offering (IPO) within the next 12 months, as revealed by Prosus interim Chief Executive Officer Ervin Tu, according to media reports. Tu stated during a call on Wednesday, following the release of Prosus' first-half results for the financial year (H1FY24), that they are actively preparing for a potential listing of PayU, targeting the second half of the upcoming calendar year.

In H1FY24, PayU, a financial technology firm backed by Prosus, witnessed a 15 per cent increase in payment services provider (PSP) revenue, reaching USD 211 million. This growth was attributed to an expansion in existing merchants, Wibmo, and the omnichannel business. The trading loss margin for the period stood at 3 per cent, compared to 1 per cent in the corresponding period the previous year.

PayU Finance, the company's local lending arm, reported a substantial 31 per cent growth in revenue, amounting to USD 43 million in the same period. The size of the company's loan book expanded by 66 per cent to USD 338 million by the end of H1FY24, with credit disbursed totaling USD 362 million during the same period. India played a significant role in PayU's PSP business, contributing approximately 48  per cent of its revenues.

Earlier in August, PayU sealed a deal to sell its global payments organizations (GPO) business, excluding Türkiye and Red Dot Payments, to fintech-as-a-service provider Rapyd for USD 610 million. Post the expected closure of the sale in the first half of calendar year 2024, the core PSP business will consist of PayU India, Iyzico in Turkey, and Red Dot Payments in South-East Asia, according to Prosus' financial statement.

Prosus highlighted that its core PSP revenue includes payments operations in India, GPO (Eastern Europe, Africa, and Latin America), Iyzico (Turkey), and Red Dot Payments (South-East Asia), where GPO encompasses Iyzico and Red Dot Payments. The payments and fintech segment revenue for Prosus has seen a notable 21 per cent increase to USD 497 million, primarily driven by its India payments and credit and its Türkiye business.

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