MobiKwik posts 80% increase in revenue for FY22 to Rs 540 cr

Fintech startup MobiKwik on Friday reported revenue of Rs 540 crore for FY22, recording 80% year-on-year growth compared to the previous financial year. The company further said its contribution margin increased to Rs 147 crore from Rs 40 crore in FY21, while its total cash burn for the first half of FY22 stood at Rs 72.5 crore.

MobiKwik says it achieved positive Ebitda around the second half of the fiscal year, although it did not provide further details on the net profit figures.

The company’s total aggregate losses amounted to Rs 110.99 crore in FY21.

Fiscal 22 was a turbulent year for the fintech startup, as the company raised $35 million in venture capital. Its payment platform saw 22 million user additions, bringing the total number of users to around 127 million. Consolidated GMV for FY22 stood at Rs 34.5 crore, representing a year-on-year growth of 132% from the prior year.

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“The most important step was to make Ebitda profitable in the second half… With a now self-sustaining business and growing momentum, we remain confident not only in achieving our short-term financial targets, but also in the long-term goal of transforming ourselves into a full-service neobank,” said Upasana Taku, co-founder of MobiKwik.

Currently, the company generates revenue primarily from two segments: payments and digital financial services. The payments segment contributed approximately 80% of consolidated revenue with a contribution margin of 32%. “We have remained profitable in this segment over the past four years with steadily rising margins. These trends should demystify questions around profitability in the payments space,” Taku added.

Additionally, MobiKwik’s digital financial services segment saw 426% YoY GMV growth. Digital financial services accounted for 5% of FY22 consolidated GMV, but accounted for 20% of revenue. MobiKwik ended the year with 2.7 million active users in the segment, with a 5-fold increase in loan disbursements. Credit costs for the company’s entry-level product fell – from 5.25% to 3.95%; downward trend in the second half.

“Our performance has given us the confidence to accelerate further – the first 5 months of FY23 matched credit disbursements for all of FY22. In addition, we are also expanding the product portfolio to meet to the diverse needs of our growing number of credit-tested users. Our goal is to become the go-to financial app for our users and merchants across Bharat.” says Upasana.

In July last year, MobiKwik had filed draft documents to raise up to Rs 1,900 crore through an initial public offering (IPO). The offering consists of a new issue worth Rs 1,500 crore and a sell offer of Rs 400 crore (OFS) by a group of existing shareholders including co-founders Bipin Preet Singh and Taku. The company was seeking a valuation of over $1 billion for the IPO. Sebi had also given a nod in principle to the proposed IPO in October 2021. The market regulator’s approval for MobiKwik’s Rs 1,500 crore IPO is, however, expected to expire in December 2022.

Sallie R. Loera