Based in Gurugram financial technology firm MobiKwik has reported significant financial growth for the fiscal year ending March 2024. The company’s revenue rose to Rs 875 crore, an impressive 62% increase from Rs 539 crore in FY23.
Strong revenue growth enabled MobiKwik to turn profitable, posting a net profit of Rs 14.08 crore, a notable turnaround from the loss of Rs 83.8 crore reported in the previous fiscal.
“We are delighted to have successfully moved from a loss-making situation to an annual profitability situation. We have made great strides in developing our products and expanding our reach to smaller cities and towns where the country is currently experiencing increased digital growth,” said Upasana Taku, Co-Founder and Chief Financial Officer (CFO) of MobiKwik.
Diversified revenue streams drive growth
MobiKwik earned revenue from various sources including top-up fees, processing fees, interest income from loan services, and revenue from payment gateways and technology platforms.
A major driver of MobiKwik’s growth was the expansion of its loan offering through strategic partnerships with lending institutions, which led to a three-fold increase in operating costs of lending to Rs 270 crore from Rs 69 crore in FY23.
Cost management and operational efficiency
MobiKwik’s total expenditure for FY24 increased 36.4% to Rs 876 crore from Rs 642 crore in the previous fiscal.
In particular, MobiKwik’s return on capital employed (ROCE) and EBITDA margins improved to 15.21% and 4.18%, respectively.
The company posted a positive EBITDA (earnings before interest, tax, depreciation and amortization) of Rs 37.22 crore in FY24, compared to a loss of Rs 55.92 crore in FY23.
IPO plans are back on track
In January 2024, MobiKwik filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise Rs 700 crore through an initial public offering (IPO).
This was the company’s second attempt to go public after a previous effort in July 2021 was pulled due to unfavorable market conditions.
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