Dutch investor Prosus has identified artificial intelligence, including agentic AI, as a growing risk to its business portfolio at a time when its fintech arm PayU posts its first operational profit and grows its footprint across Indian payments and credit sectors.
- Prosus cites AI as a potential threat to business growth in India.
- PayU achieves $18 million operational profit with 13% revenue growth.
- PayU embeds payment and credit services across major Indian internet firms.
What happened
In its latest annual report, Prosus, the Dutch investment group backing multiple Indian consumer internet companies including Swiggy and Rapido, raised concerns about artificial intelligence and agentic AI posing risks to its business. This aligns with broader industry challenges in India, where firms like Info Edge and IndiaMART have also reported AI-related impacts on their core operations and revenues.
Meanwhile, PayU, Prosus's fintech subsidiary focused on payments and credit, marked a significant milestone by reporting its first operational profit of $18 million in FY26, reversing a $25 million loss from the previous year. The profitability arose mostly from exiting low-margin businesses, and PayU saw a 13% revenue increase to $781 million, driven by growth in payment services and credit issuance.
Why it matters
Prosus’s caution about AI risks highlights the disruptive potential of AI technologies on the competitive landscape of digital services in India. Several Indian companies have felt the impact of AI on user engagement and revenue streams, reflecting an industry-wide challenge to adapt and innovate under changing technological dynamics.
What to watch next
Careful observation will be required to see how Prosus and its portfolio companies mitigate AI-related risks while leveraging new technologies. PayU’s plans to launch generative AI-native products across payments, SaaS, and credit could redefine fintech offerings, but they also bring potential operational and competitive challenges.
Prosus’s continued integration of PayU’s services with prominent Indian platforms such as Swiggy, Meesho, ixigo, Urban Company, and Rapido suggests a strategy focused on embedded finance to boost transaction volumes and credit products. Monitoring the adoption and performance of these offerings will be critical to understanding future growth trajectories and market dynamics in India’s fintech sector.