PayU reports up 13% YoY growth in revenue, Swiggy quick-commerce investments drag profitability: Prosus

Dutch technology investor Prosus’ India business reported revenue of $781 million in FY26, up 13% year-on-year, driven by improved profitability at fintech arm PayU and continued growth across its investment portfolio, even as higher spending on Swiggy’s quick commerce business weighed on overall profitability.

The company, which counts PayU (100%), Swiggy (22%), Meesho (11%), Rapido (24%) and ixigo (16%) among its largest India investments, said it continued to deepen integration across its portfolio, with PayU powering payments, credit and financial services for several of its consumer internet businesses. “Our Indian ecosystem is evolving through better execution and acquisitions of high-potential businesses, with new investments in Rapido and ixigo,” Prosus said. “PayU is increasingly connected across this ecosystem, adding new partnerships and driving measurable cross-platform synergies.”

PayU posts first annual EBITDA profit

PayU reported revenue of $781 million for FY26, up 13% year-on-year (11% in constant currency), while adjusted EBITDA turned positive at $18 million for the first time. Adjusted EBIT loss narrowed 80% to $10 million.

The company processed $90 billion in total payment volume during the year, up 15%, while transaction volumes increased 49%.

Its payments business generated $577 million in revenue, contributing nearly three-fourths of PayU’s overall revenue. Adjusted EBITDA from the payments business quadrupled to $12 million as the company exited loss-making merchant portfolios and expanded higher-margin software and value-added services, which now account for one-third of payments revenue.

The credit business also reached profitability, with revenue rising 19% to $204 million and adjusted EBITDA improving to $6 million from a loss of $28 million a year ago after PayU shifted to a partnership-led digital lending model.

Prosus said PayU leveraged its Mindgate acquisition to strengthen its UPI infrastructure and, through Mindgate and Wibmo, now helps banks process one in every two UPI transactions and three in every four credit card transactions in India. The company also secured all three payment aggregator licences covering online, offline and cross-border payments.

Looking ahead, Prosus said, “PayU’s evolution as the leading fintech platform continues to take shape, with the build of several new solutions at the intersection of payments, credit and payment technology services that will continue to shape the growth profile of PayU and the industry.”

Swiggy growth offsets profitability gains

While PayU reached profitability, Prosus said increased investments in Swiggy’s quick commerce business offset some of the gains from its food delivery operations.

For calendar year 2025, Swiggy reported 46% growth in gross order value, while monthly transacting users increased 37% to 24.3 million. The food delivery business more than doubled its adjusted EBITDA and posted 19% growth in gross order value, driven by products including Bolt, One BLCK, Food on Train and 99 Store.  However, Prosus said “the food delivery business more than doubled its aEBITDA, however, this was offset by a higher degree of quick commerce investments to remain competitive.”

Instamart remained Swiggy’s fastest-growing vertical, with gross order value increasing 105% year-on-year. The business expanded its dark store network to 1,136 locations, average order value rose 40%, and contribution margin improved to negative 2.5% from negative 4.6% a year earlier as management reduced promotional intensity to improve unit economics. Prosus owned 22.31% of Swiggy at the end of the reporting period.

Prosus also strengthened its India portfolio by acquiring a 16.24% stake in ixigo and increasing its holding in Rapido to 23.52%. The company said PayU’s processing of Swiggy’s GMV increased fivefold over the past year, while its partnership with Meesho more than doubled loan originations for consumers and merchants within nine months. PayU also recorded a 50% increase in ixigo’s UPI payment volumes within a month.

“We are excited about the addition of a 16.24% interest in the fastest-growing Indian online travel agency (OTA), ixigo, to our portfolio, and an increased 23.52% stake in Rapido,” Prosus said, adding that its India portfolio companies now reach more than 500 million annual users and process around 450 million orders every month.