Dutch investment firm Prosus highlighted AI and agentic AI as potential risks to its business in its FY26 annual report, released this week. Meanwhile, its fintech arm PayU reported its first operational profit of $18 million in FY26, reversing a $25 million loss in FY25. PayU’s revenue grew 13% to $781 million, driven by higher-margin value-added services and SaaS offerings, according to medianama.com.
Prosus’s report noted challenges AI poses to several Indian consumer internet companies it backs, including Swiggy, Rapido, and ixigo. The fintech unit PayU achieved profitability primarily by exiting businesses with negative margins. Payments revenue increased 10% year-on-year to $577 million, with value-added services and SaaS contributing 35% of this segment’s revenue, the FY26 results presentation detailed.
The firm’s caution on AI risks follows similar concerns from other Indian companies. Info Edge reported AI impacted billings at its education arm Shiksha, while IndiaMART filed a legal case against OpenAI over alleged exclusion from AI-generated responses. PayU’s turnaround contrasts with these challenges, marking a notable milestone in Prosus’s portfolio performance amid a shifting tech landscape.
PayU’s operational profit of $18 million in FY26 marks a significant financial milestone after prior losses, with payments business profitability reaching $12 million. Prosus’s FY26 annual report and results presentation provide detailed financial disclosures, underscoring the fintech unit’s improved performance.