Prosus bets on India as its creates number 1 lifestyle ecom company

PayU India reorganises payments business, tightens credit underwriting

Dutch investor Prosus is betting big on India as it builds the number one lifestyle ecommerce company, including in Europe and Latin America. This bet is being built on the ecosystem it has created in every region.

 

This lifestyle ecommerce company in India is built on the ecosystem powered by food services (Swiggy), fintech (PayU), commerce (Meesho) and experiences (Urban). 

 

“We are sure that focusing on a few ecosystems and in a few regions, the synergies generate a lot of value to our company in terms of cross-sell and sharing best practices,” said Fabricio Bloisi, chief executive officer, in an analyst call.

 

The investor in FY25 clocked revenues of $6.2 billion, a 21 per cent consolidated increase from $5.5 billion in FY24.

 

The company’s aEBIT (adjusted earnings before interest and tax) stood at $179 million in FY25 as compared to a negative aEBIT of $118 million in the previous year. 

 

More than 50 per cent of its India investment has given a healthy internal rate of return (IRR) for the company.

 

PayU

 

PayU India has reorganised its payments business while tightening underwriting after losses in its consumer loan portfolio, according to Prosus.

 

Prosus added it aimed to restore the fintech’s profitability after it recorded a trading loss or a negative aEBIT despite an improvement in revenue and margins. 

 

In a report published Monday, Prosus said, fintech firm PayU India’s payments business broke even in the second half of FY25, with a revenue growth rate of 12 per cent to $498 million in 2024-25. 

 

PayU Finance, the credit arm of the company, saw its revenue grow to $171 million, taking the firm’s consolidated revenue for FY25 to $669 million. 

 

“To accelerate business growth, we have reorganised the payments business with dedicated teams focusing on key account management, acquiring new customers in existing segments as well as forging new partnerships,” Prosus said.  

 

Food delivery

 

Prosus noted the growth that Swiggy has brought in its quick commerce arm, Instamart, had come at the cost of profitability challenges due to expansion in its network and intense competition. 

 

“Swiggy’s Q125 results showcased a year-on-year GOV growth of approximately 40 per cent led by a food delivery GOV increase of 18 per cent year on year, and quick commerce (Instamart) GOV growth of 101 per cent year on year, with 316 new dark stores added in the quarter,” it said in a report. 

 

Swiggy was aiming contribution breakeven in the quick commerce segment in the next three to five quarters, it noted. 

 

It added the food-delivery company’s adjusted Ebitda (earnings before interest, tax, depreciation and amortisation) loss reduced to $182 million during January-December 2024 from $261 million in the same period the previous year.