News Update

PayU announces a revenue increase of more than 50%, net profit of Rs. 126 crore

• ByStartupStory     |    October 29, 2022

For the fiscal year 2021–2022, PayU Payments, the Indian division of Dutch technology investment group Prosus, announced a consolidated revenue increase of more than 50% to Rs 2,130.2 crore (FY22).In FY22, it recorded a net profit of Rs 125.8 crore.

For the fiscal year that ended on March 31, 2021, the company generated consolidated revenue of Rs. 1,415.67 crores (FY21). At the same time, it had also disclosed net losses of Rs. 114.6 crores.

From Rs 1,393.8 crore in FY21 to Rs 2,099.4 crore in FY22, the total revenue from operations increased. Compared to FY21, when total expenses were Rs 1,530.3 crore, FY22 saw an increase to Rs 2,229.5 crore.

Prior to this, Prosus said that PayU’s global revenue increased by 45% year over year to $796 million for FY22 due to “excellent success in the India payments industry and a good recovery in credit.”

According to the statement, the Indian subsidiary’s total payment value (TPV) for the year increased by 66% to $43.8 billion due to the diversification of the merchant portfolio into industries like financial services and bill payments.

According to Prosus’ investor presentation at the beginning of the year, PayU India’s loan business had 62 million customers as of June and 46,000 active merchants on the platform.

The Reserve Bank of India’s order prohibiting the loading of credit lines onto prepaid payment instruments (PPIs) in recent months has forced LazyPay, PayU India’s lending arm, to alter its business strategy for its card product, LazyCard.

According to a report from July, LazyPay also had to halt operations for its LazyPlus UPI buy-now-pay-later (BNPL) payment service due to growing regulatory concerns for card-based credit fintech companies.

Earlier this month, Prosus also put an end to PayU Payments’ massive $4.7 billion acquisition of online payment gateway company BillDesk.

Little more than a month had passed since India’s anti-trust watchdog, the Competition Commission of India (CCI), had approved the general terms of the agreement, which had been initially revealed in August 2021.

 

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