Prosus loss widens to USD 80 million on account of investment in PayU India business

NewsDrum Desk
23 Nov 2022

New Delhi, Nov 23 (PTI) Technology investor Prosus on Wednesday reported widening of its consolidated trading loss to USD 80 million, about Rs 654 crore, on account of investment in PayU India business during first half of the current fiscal.

The Netherlands-based investor firm, however, registered a 59 per cent growth in total payments volume (TPV) at USD 28 billion, about Rs 2.29 lakh crore, in India.

PayU revenue increased to USD 183 million, about Rs 1,497 crore.

"Consolidated trading losses expanded to USD 80 million, as we continued to invest in growing our credit operations in India. In India, our largest payments market, TPV grew 59 per cent to USD 28 billion, and revenue increased 48 per cent to USD 183 million, following increased digitalisation in e-commerce, financial services and bill payments, and a rebound in post pandemic travel," the company said.

The Prosus group's overall trading loss widened to USD 1.4 billion during the reported period from USD 2.8 billion a year ago.

The revenue of the Prosus group increased by 9 per cent on a year-over-year basis to USD 16.5 billion in the first half of FY23 from USD 16.3 billion in first half of FY22.

Prosus portfolio firms that operate in India include OLX, BYJU's, Udemy, Meesho, Elasticrun, DeHaat, PharmEasy, among others.

The edtech segment revenue on an economic interest basis of the company grew by 38 per cent to USD 334 million, while trading losses grew to USD 178 million, impacted by one-off adjustments related to BYJU's, Udemy and Skillsoft.

Prosus had invested USD 536 million in BYJU'S since 2018 to purchase a 10 per cent stake in the edtech firm.

The total holding of Prosus in BYJU's has now come down to a fair value of 9.67 per cent and has stopped the equity account for the edtech firm.

"In September 2022, the group lost significant influence in BYJU'S as it no longer exerts significant influence over the financial and operating policies of the entity. The group recognised a gain on disposal of the associate of USD 22 million, including a reclassification of the accumulated foreign currency translation losses of USD 55 million. The group accounts for its 9.67 per cent effective interest in BYJU'S at fair value through other comprehensive income," Prosus said.

The fair value of the BYJU'S investment, subsequent to the loss of significant influence, is USD 578 million, the investor firm said. PTI PRS HVA

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