PayU is seeking an initial public offering within the next 12 months, according to Prosus interim Chief Executive Officer Ervin Tu.
“We are preparing for a potential listing of PayU, aiming for the second half of next calendar year,” Tu said on a call on Wednesday after Prosus published its first half results for the financial year (H1FY24).
The Prosus-backed financial technology firm's payment services provider (PSP) revenue rose 15 per cent to $211 million in H1FY24 on the back of growth in existing merchants, Wibmo, and its omnichannel business.
Its trading loss margin stood at 3 per cent compared to 1 per cent in the first half of the previous year.
The company’s local lending arm, PayU Finance, recorded a 31 per cent growth in revenue amounting to $43 million during the same period. The size of the company’s loan book expanded 66 per cent to $338 million at the end of H1FY24. During the same time, it disbursed $362 million in credit.
The company added that India was one of its largest markets in the PSP business, contributing a share of around 48 per cent of its revenues.
More From This Section
In August this year, PayU inked a deal to sell its global payments organisations (GPO) business, excluding Türkiye and Red Dot Payments, to a fintech-as-a-service provider, Rapyd, for $610 million.
“After the sale, which is expected to close in the first half of calendar 2024, the core PSP business will constitute PayU India, Iyzico in Turkey, and Red Dot Payments in South-East Asia,” Prosus said in its financial statement.
Prosus’ core PSP revenue comprises payments operations in India, GPO (Eastern Europe, Africa, and Latin America), Iyzico (Turkey), and Red Dot Payments (South-East Asia). GPO also includes Iyzico and Red Dot Payments.
For Prosus, its payments and fintech segment revenue has increased 21 per cent to $497 million. The company said this is driven by its India payments and credit and its Türkiye business.
The company added that its consolidated trading loss narrowed by $62 million in local currency to $22 million.
“This is due to improved profitability in GPO, Türkiye, and savings from the closure of India’s LazyCard business,” it said.
