After years of trying, PayU India has finally achieved a major milestone.
The Prosus-owned fintech company has reported its first-ever full-year operating profit in FY26. PayU India posted a positive adjusted EBITDA of $18 million. That's a big jump from the $25 million loss it recorded last year.
But that's not the most interesting part. The real story is how the company turned its business around. The numbers behind this profit reveal why.
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Revenue Crosses $781 Million
The company's revenue grew to $781 million in FY26. That's a 12.5% rise from $694 million in FY25, according to Prosus' latest annual report.
So, what helped PayU India turn profitable?
- Payments business - Revenue increased by 10% to $577 million, mainly because more people used UPI for digital payments.
- Credit business - Revenue rose 19% to $204 million. For the first time, this business also became EBITDA-positive, meaning it started earning an operating profit.
- Value-added services - Security solutions and software services became a bigger source of income. They now make up 33% of payments business revenue.
(Source: Inc42, Business Standard)
But there's one important number that most headlines have overlooked.
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The Number Hiding In Plain Sight
Today, PayU India earns nearly one-fourth of the revenue in India's online payments industry. Its lending business is also expanding fast, with $682 million worth of loans and assets under management.
This achievement gives PayU an edge over many of its competitors. Companies like Razorpay and Cashfree are still chasing profitability. They're also fighting for a bigger share of India's digital payments market. PayU, meanwhile, has already crossed that line. This makes the company's turnaround even more impressive.
Prosus CEO Fabricio Bloisi called India a key growth market. He praised the strong performance of companies like Rapido and ixigo, noting Rapido is growing at over 100% year-on-year. Prosus said PayU is becoming the backbone of its India ecosystem, strengthening partnerships with Swiggy, Meesho, and small businesses.
(Source: Business Standard)
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But Here's The Twist
In the second half of FY26, PayU India's revenue fell 3.4%. It dropped to $384 million from $397 million in the first half. The company said this happened because it stopped working with some low-profit merchants. Although this reduced revenue in the short term, PayU says the move will help improve long-term profitability.
What This Means For PayU's IPO Plans?
The company has been eyeing public markets for years, delaying its IPO plans last July to focus on growth. With profitability now achieved and RBI's payment aggregator approval secured, speculation around a fresh listing timeline is heating up again.
One milestone is locked in. The next big question — IPO timing — still hangs in the air.
