prosus revenue growth: Prosus reports strong growth in Swiggy, Instamart, PayU in 2022

prosus revenue growth: Prosus reports strong growth in Swiggy, Instamart, PayU in 2022


Prosus, the Dutch-listed arm of South African technology investor Naspers, said it has seen strong growth in its food-delivery and fintech businesses in India – Swiggy and PayU, respectively.

Prosus said Swiggy’s core food-delivery business clocked order growth and gross merchandise value (GMV) growth of 38% and 40%, respectively for the first six months of the calendar year 2022. Swiggy’s quick-commerce business Instamart saw order and GMV growth of 20 times and 15 times, respectively.

“Restaurant food delivery GMV was $1.3 billion, while quick commerce GMV was $257 million for the first six months of the year. Our share of Swiggy’s revenue grew faster at 72% to $150 million, reflecting higher average order values and increased revenue from delivery fees and advertising sales,” it said in a presentation. GMV includes delivery fees.

According to Prosus, its share of Swiggy’s trading loss increased to $105 million during the period under review, “driven by investment in both the core restaurant food delivery business to increase growth and in Instamart to expand its footprint”. Prosus owns a 33% stake in Swiggy.

Payments and fintech

Prosus also said its consolidated payments and fintech revenue grew 57% to $412 million, driven by a strong performance in India, Turkey, Poland, and the scaling of its credit business in India through LazyPay. The review period for the fintech unit is April to September 2022.

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Revenue from payments in India grew 48% to $183 million – driven by digitisation in retail through ecommerce – and financial services, the global investment group said in its presentation to investors.

“In India, our largest payments market, total payment value (TPV) grew 59% to $28 billion, and revenue increased 48% to $183 million, following increased digitalisation in ecommerce, financial services and bill payments, and a rebound in post-pandemic travel… Within PayU’s fintech investment portfolio, our share of Remitly’s revenue grew 46% to $67 million,” it said in the presentation.

Overall TPV for PayU, Prosus’s fintech and payments arm, grew 49% to $46 billion.

PayU’s credit operations in India, including LazyPay and Paysense, clocked revenues of $49 million in the first half of FY23, more than double the $15 million revenues they clocked during the same period last fiscal.

In October, Prosus scrapped its $4.7-billion deal to acquire payments firm BillDesk through PayU India. This was pegged as the second largest M&A in the Indian startup ecosystem but was eventually cancelled a year after it was announced.

Accounting change for Byju’s

As for Byju’s, another of its portfolio firms in India, Prosus said it stopped equity accounting for the firm in September 2022 as it lost its “significant influence” over Byju’s with a less than 10% stake in it.

“The group accounts for its 9.67% effective interest in Byju’s at fair value through other comprehensive income. The fair value of the Byju’s investment, subsequent to the loss of significant influence, $578 million,” it added.

Prosus has stopped equity accounting for portfolio firm Udemy as well, it said in the presentation. Effectively, this is a change in accounting policy because of the loss of control in these firms, and not a markdown in the valuation.

Byju’s was last valued at $22 billion after raising $250 million in October. ET also reported the company was in talks to raise up to $500 million through convertible notes – a form of investment that would not require the company to be ascribed an explicit valuation.

Prosus still has a seat on Byju’s board but has lost certain rights now that it owns less than 10% in the edtech firm, as against 11% at the start of the year.

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