PayU India swings to Ebitda profit in FY26 as payments and credit rally
PayU India posted $781M FY26 revenue (up 12.5%) and $18M Ebitda, turning profitable as payments grew 10% to $577M and credit jumped 19% to $204M. Mindgate buy and higher-margin VAS/SaaS lifted margins, anchoring Prosus's India rails across Swiggy, Meesho and ixigo.
What happened
PayU India turned Ebitda-profitable in FY26 with $781M revenue (up 12.5%), driven by payments and credit gains, Mindgate acquisition, and higher-margin
Key facts
- $19M H2 Ebitda
- 5% H2 margin
- $384M H2 revenue
- $781M FY26 revenue up 12.5%
- $18M FY26 Ebitda
- payments $577M up 10%
- credit $204M up 19%
- Mindgate 70% stake ~$300M valuation
- TPV up 15%
- transactions up 49%
Why this matters
The Mindgate acquisition's margin lift shows targeted M&A can accelerate profitability, making bolt-on payments/SaaS assets attractive consolidation targets in India.
What to watch
- Formal IPO/DRHP filing or listing intent from PayU/Prosus
- RBI digital-lending or payment-aggregator regulatory updates
- Quarterly credit book growth and NPA/asset-quality disclosures
- Take-rate trends in payments amid UPI zero-MDR pressure
- Competitor funding/IPO moves (Razorpay, Pine Labs, PhonePe)
- Prosus signals IPO timeline or pre-IPO governance changes for PayU India
- Deepen embedded-credit partnerships across Swiggy, Meesho, ixigo portfolio
- Pursue bolt-on acquisitions in UPI/SaaS rails following Mindgate playbook
- Reinvest VAS/SaaS gains to defend payments take-rate against Razorpay and PhonePe