Prosus NV's India business turned profitable in fiscal 2026, driven by a sharp improvement in its fintech arm PayU, but rising losses from food delivery platform Swiggy offset much of those gains, underscoring the uneven nature of its India portfolio.
The Amsterdam-listed technology investor reported adjusted EBITDA of $18 million from India operations in FY26, compared with a loss of $25 million a year earlier, marking its first year of profitability in the market.
That turnaround was led by PayU, where earnings recovered on the back of tighter cost discipline and a shift away from low-margin businesses. The company said it exited negative margin portfolios in H2, a move that weighed on revenue growth but improved profitability.
But those gains were partly eroded by weak performance of Swiggy, one of Prosus' key India associates. The company's share of losses from Swiggy widened to $126 million in FY26, more than doubling from the previous year, according to its results. Prosus holds a substantial 23% stake in Swiggy.
The divergence highlights that while its core fintech unit is entering a more disciplined, profit-focused phase, consumer internet investments continue to absorb capital as they chase scale.
Prosus' India exposure is largely through minority holdings across consumer internet platforms, with the group owning roughly 22–23% in Swiggy, about 23.5% in Rapido, around 16% in ixigo, and close to 11% in Meesho, alongside its fully controlled fintech arm PayU.
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Fintech Profitability Over Expansion
At PayU, revenue rose to $781 million in FY26, with growth moderating to the low teens as the company prioritised profitability over expansion.
Within that, the credit business emerged as a key driver. Revenue from lending climbed to $204 million, while the segment swung to a positive EBITDA of about $6 million, from a loss the year before.
This shift reflects Prosus' broader strategy of building higher-margin financial services on top of its payments infrastructure. The company is increasingly focussing on credit and value-added services to improve monetisation in a market dominated by low-margin UPI transactions.
Still, margins remain thin. PayU's overall profitability stood at just around 2% EBITDA margin in FY26.
Consumption Bets Still In Investment Mode
In contrast, Prosus' food delivery exposure through Swiggy continues to weigh on consolidated performance. While the company did not break down operational metrics for Swiggy in detail, the rising losses indicate continued investment in areas such as quick commerce, logistics capacity and customer acquisition.
The management has repeatedly flagged that its ecosystem strategy involves combining delivery, fintech and lifestyle services, with India positioned as a long-term growth market rather than an immediate profit contributor.
“We are focused on delivery, finance and experience… building an ecosystem across Latin America, Europe and India,” Chief Executive Officer Fabricio Bloisi said in the earnings commentary, emphasising ongoing investment in scaling platforms.
The contrast between PayU's improving discipline and Swiggy's continued cash burn underscores the dual-track nature of Prosus' India exposure.
The net result is that while India has crossed a key profitability milestone, the quality of earnings remains dependent on the performance of its associate portfolio.
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