Prosus flags AI as business risk as PayU achieves profitability
Investment firm Prosus has identified AI and agentic AI as potential business risks. Concurrently, its fintech arm, PayU, has reported its first operational profit.
Dutch investment firm Prosus has flagged Artificial Intelligence (AI) and agentic AI as potential risks to its business in its latest annual report. This comes as Prosus's fintech subsidiary, PayU, reported its first operational profit of $18 million for the fiscal year 2026.
Several Indian companies have recently cited AI as a business threat. Info Edge, the parent company of Naukri and Jeevansathi, noted that AI impacted billings in its education arm, Shiksha, during the quarter ending March 2026. IndiaMART has also taken legal action against OpenAI, alleging discriminatory AI-driven search results.
PayU's turnaround to profitability in FY26 was primarily driven by exiting businesses with negative margins. The company's revenue increased by 13% to $781 million. Its payments business saw a 10% revenue rise and an operational profit of $12 million, while the credit business grew revenue by 19% and achieved an operational profit of $6 million, a reversal from the previous year's losses.
Prosus also detailed deeper integration of its payment and credit offerings across its Indian portfolio companies, including Swiggy and ixigo, through PayU. The company further announced plans to launch native generative AI products across its payments, SaaS, and credit segments, without disclosing specific details.
During FY26, PayU also strengthened its position in India's payment infrastructure by increasing its stake in Mindgate Solutions to 70.7%. Together with Wibmo, Mindgate and Wibmo process approximately one in every two UPI transactions and three out of every four credit card transactions in India.