Prosus-owned fintech company PayU India managed to narrow its consolidated net loss by 42% to Rs 248 crore in the fiscal year 2024-25, from Rs 429.7 crore in the previous year on the back of strong growth in its payment gateway and lending businesses.
Revenue from operations jumped 22.8% to Rs 5,563 crore during fiscal year 2024-25, rising from Rs 4,527.3 crore in FY24 according to the company’s MCA filings accessed by MediaNama.
Including other income of Rs 33.5 crore, the fintech enterprise’s total revenue stood at Rs 5,596.5 crore during the year ended March 31, 2025.
PayU India further disclosed that it received a tax credit of Rs 1.6 crore in FY25 as against a tax expense of Rs 156.05 crore exactly a year ago. Notably, this also helped the company improve its bottom line.
Where Did PayU Generate Revenue From?
Founded in 2002 by Nitin Gupta, Shailaz Nag, Jose Velez, Martin Schrimpff, Arjan Bakker and Grzegorz Brochocki, PayU primarily earns revenue from the payment gateway commission it charges from merchants for facilitating digital payments. This fee rose 15.5% to Rs 3,868.2 crore in FY25, from Rs 3,349 crore in FY24.
Meanwhile, its credit business saw interest income on loans surge more than 90% to Rs 1,042 crore during the year under review, as compared to Rs 547.56 crore in FY24. The growth in this vertical can be attributed to two major developments:
- In August 2024, PayU teamed up with Amazon Pay, enabling online merchants to extend a credit line to customers.
- In June last year, its lending unit LazyPay partnered with Blinkit to offer its users one-tap payment and buy-now-pay-later (BNPL) services.
It is to be noted that PayU launched LazyPay in 2017, marking its foray into the credit space. In FY25, this very lending arm disbursed loans worth $1.1 billion. And the loan book at the end of March 2025 stood at $558 million, up 19% YoY.
“India Payments witnessed steady progress in profitability (in FY25) despite competitive pressure and a higher unified payments interface (UPI) mix, resulting in lower take rates.
It reached breakeven during H2 FY25 due to continued focus on cost optimisation and scale leverage,” said Prosus in its FY25 annual report.
Breaking Down PayU India’s Expenses
The growth in top line outpaced the rise in expenditure for the fintech major in FY25. Total expenses rose 20.6% to Rs 5,846.1 crore in FY25, from Rs 4,845 crore in FY24.
Cost of services: This expense head, comprising payment gateway cost and interest on borrowings for finance business, surged nearly 25% to Rs 4,239.2 crore in FY25 from Rs 3,393.6 crore in the previous year.
Employee Cost: The company spent Rs 667.6 crore on employee-related expenses in FY25, a 6.4% decrease from Rs 713.5 crore in the previous year.
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Impairment Loss: The fintech major incurred impairment expenses to the tune of Rs 461.8 crore during the year under review, a 61% jump from Rs 286.8 crore in…
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