SUMMARY
- Fintech firm MobiKwik has witnessed a remarkable surge in revenue by over 62% to Rs 875 crore from Rs 539 crore in FY23.
- MobiKwik recorded a profit of Rs 14 crore in FY24, a significant improvement from the Rs 84 crore loss in FY23.
- The increase costs of employee benefits, promotional & legal cost, and other overheads resulted in a 36.4% rise in total costs to Rs 876 crore in FY24 from Rs 642 crore in FY23.
Fintech firm MobiKwik has witnessed a remarkable surge in revenue by over 62%. The fintech company has also achieved profitability in the fiscal year 2024, recovering from a financial setback of Rs 84 crore in the previous fiscal year. This resurgence is expected to have minimal impact on its prospects for an Initial Public Offering (IPO).
In the fiscal year 2024, MobiKwik’s revenue from operations has increased to Rs 875 crore from Rs 539 crore in FY23, as per the consolidated annual financial results obtained from the Registrar of Companies (RoC).
The primary sources of revenue for MobiKwik in the fiscal year 2024 include income from commissions on recharge, processing, and interest on loans, payments through gateways, and technologies platforms.
During FY24, the company expanded its loan offerings through partnerships, leading to a threefold increase in its lending operational costs to Rs 270 crore from Rs 69 crore in the previous fiscal year. Additionally, its payment gateway experienced a growth of 18.4% to Rs 201 crore.
The increase costs of employee benefits, promotional & legal cost, and other overheads resulted in a 36.4% rise in total costs to Rs 876 crore in FY24 from Rs 642 crore in FY23.
Despite these challenges, MobiKwik has managed to turn profitable, recording a profit of Rs 14 crore in FY24, a significant improvement from the Rs 84 crore loss in FY23. The company’s ROCE and EBITDA margins have also seen an improvement, standing at 15.21% and 4.16%, respectively. On a unit basis, the company spent Rs 1 to generate a rupee in FY24.
In January 2024, MobiKwik submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) with the aim of raising Rs 700 crore through its Initial Public Offering (IPO). The company also reported profitability during the first half of FY24, achieving a profit of Rs 9.5 crore and an operating revenue of Rs 381 crore.
This marks the second attempt by MobiKwik to go public, following its initial filing of the DRHP in July 2021. However, the company later decided to abandon its public listing citing unfavorable market conditions. It is noteworthy that the company is now aiming to raise less than half of the amount it sought in its previous IPO attempt.
Following the filing of the DRHP, MobiKwik successfully secured a debt funding of Rs 50 crore from BlackSoil Capital.
Despite being overshadowed by competitors such as Paytm and its esteemed investors, MobiKwik has managed to achieve profitability well before its competitors are expected to. The company has consistently chosen to focus on its core offerings, even as its peers have expanded into various segments. Now, with a strong balance sheet and the commitment of its founders to the company’s future, MobiKwik appears well-positioned to capitalize on its IPO opportunity. The relatively small debt funding raise can also be interpreted as a sign of confidence and conviction in proceeding with the IPO process.
