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Prosus\' India biz sees uptick as Swiggy stages strong recovery, PayU India drives global growth
Photo Credit: 123RF.com

Consumer internet group Prosus India’s business staged a "strong recovery" in its food delivery segment, while its payments and fintech space reported "solid results" as it continued to benefit from the country's growing shift to digital payments, the company said in a statement. 

In a regulatory filing, Prosus said that its global fintech and payments subsidiary PayU’s revenue grew 44 per cent to $359 million in the six months ended September 2021. 

Revenue growth in this segment was largely owing to a strong performance in its India business, and resumed activity in the credit space, the statement said. Total payment volume (TPV) in the India business grew 70% to $18.9 billion, and revenue increased 55% to $133 million. 

In August, Prosus, along with PayU, agreed to acquire Indian payment gateway service provider BillDesk for $4.7 billion.https://www.vccircle.com/payu-to-acquire-billdesk-for-4-7-billion

This is the biggest mergers and acquisition (M&A) transaction in the startup ecosystem in India, after Walmart's buyout of Flipkart for $16 billion in 2018.

Swiggy’s strong recovery boosted Prosus' food delivery business in India. Swiggy recorded 56% growth in food delivery revenue, up 91% versus pre-Covid-19 levels.

Prosus invested an additional $274 million in Swiggy, to take its stake in the company to 36.3%. In July this year, Swiggy said it has closed a fundraise of $1.25 billion (Rs 9,344 crore), led by new investor SoftBank Vision Fund 2 and existing backer Prosus. Swiggy's fundraise had come just days after its rival Zomato's closely-watched initial public offering (IPO) received a thumping response.

Prosus noted that trading losses in the food delivery segment rose to $312 million across the globe. "This (reflects) increased investment into adjacencies and customer acquisition costs, as Covid-19 lockdowns eased, plus our stepped-up stake in Delivery Hero," the statement said. However, operating margins in the food delivery segment improved by six percentage points during the period, it added. 

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