Digital payments firm MobiKwik (One MobiKwik Systems Limited), which is preparing for an initial public offering (IPO), has announced significant financial improvements for the fiscal year ending March 2024.
Financial Highlights
Digital payments firm MobiKwik has released its financial results for the fiscal year ending March 2024, reporting:
- Operating revenue: Rs 875 crore, up 62% year-over-year
- Profit After Tax (PAT): Rs 14.08 crore, compared to a loss of Rs 83.08 crore in FY2023
- Total expenses: Rs 876 crore, an increase of 36.4% from Rs 642 crore in FY2023
Revenue Breakdown and Business Growth
MobiKwik’s non-payment services, primarily financial product distribution, now account for 55% of the company’s revenue. Key areas include:
- Small-ticket consumer loans and buy-now-pay-later (BNPL) options through MobiKwik Zip
- Loan offerings ranging from Rs 1,000 to Rs 2 lakh based on user transaction history
Loan disbursals saw significant growth:
- FY2023: Rs 4,102 crore, up 204% from FY2022
- First half of current fiscal: Approximately Rs 2,800 crore
The company has also expanded into investment products, offering digital gold, deposits, and direct mutual funds.
IPO Plans
MobiKwik has refiled its draft red herring prospectus (DRHP) with SEBI in January, aiming to raise Rs 700 crore through an IPO. This marks the company’s second attempt to go public.
Management Commentary
Co-founder and CFO Upasana Taku attributed the growth to an expanding user base and increased financial services revenue. Taku stated, “We’ve made progress in advancing our products and expanding our reach to smaller towns and cities, where digital growth is currently surging.”
Market Position
According to the DRHP, 70% of MobiKwik’s loans are under Rs 5,000, compared to the industry average of 68% for digital disbursals.
The company’s transition to profitability and revenue growth comes amidst increasing competition in the digital payments and financial services sector in India.
