MobiKwik Achieves ₹291 Crore Revenue in Q2 FY25 but Reports ₹3.5 Crore Net Loss

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Fintech platform MobiKwik reported significant growth in revenue for the second quarter of FY25, marking a 43% year-on-year increase to Rs 291 crore. Despite this robust growth, the company posted a net loss of Rs 3.5 crore, contrasting with a Rs 5 crore profit in Q2 FY24. MobiKwik’s positive EBITDA of Rs 3.5 crore highlights its operational efficiency amidst rising costs driven by payment gateway expenses and employee benefits. The platform’s user base expanded by 13.6% year-on-year, reaching 167 million, with over 4.4 million merchants onboard. The company also reported a threefold increase in Payment GMV to Rs 28,280 crore.

Understanding MobiKwik: The Fintech Story

Working Model and Services

MobiKwik operates as a digital wallet and payment gateway platform catering to individuals and businesses. Its services include:

• Digital Wallets: Enabling secure and seamless payments for users.
• Payment Gateways: Offering merchants advanced tools to process transactions.
• Lending Solutions: Providing short-term loans with minimal documentation.
• Bill Payments and Recharges: Supporting utilities, DTH, and mobile recharges.

Revenue Model

MobiKwik generates revenue through:

1. Commissions: Earned on recharges, bill payments, and other transactions.
2. Payment Gateway Fees: Charged to merchants for transaction processing.
3. Interest Income: Derived from loans serviced through its platform.
4. Technology Platform Fees: Collected from businesses leveraging its services.

Founding and Background

Founded in 2009 by Bipin Preet Singh and Upasana Taku, MobiKwik began as a prepaid mobile recharge website. With a background in engineering, Singh envisioned simplifying online payments in India. Taku, a Stanford graduate, brought her expertise in global finance to scale the platform. Over the years, MobiKwik has emerged as a key player in India’s fintech ecosystem platform.

Q2 FY25 Performance Analysis

Revenue Growth

MobiKwik’s revenue surged to Rs 291 crore in Q2 FY25, up from Rs 203 crore in Q2 FY24. This 43% growth reflects its success in:

• Expanding its merchant network.
• Growing its user base to 167 million, up 13.6% year-on-year.
• Scaling its Payment GMV by 3.67 times to Rs 28,280 crore.

Net Loss Despite Positive EBITDA

While the net loss of Rs 3.5 crore signals a decline from the Rs 5 crore profit reported in Q2 FY24, the company achieved a positive EBITDA of Rs 3.5 crore. This highlights operational efficiencies despite increased expenses.

Expense Breakdown

The company’s total expenses reached Rs 287 crore, a 47.9% increase from Q2 FY24, primarily driven by:

• Payment Gateway Costs: Rs 136 crore, constituting 47% of total expenses.
• Employee Benefits: Rs 43.5 crore.
• Overheads: Including legal, advertising, and finance costs.

Key Milestones in Q2 FY25

1. User Base Expansion: 167 million registered users, with over 4.4 million merchants.
2. Stable Take Rate: Retained at 0.7% despite growing transaction volumes.
3. Public Market Debut: MobiKwik’s listing on the stock exchange saw a 59% premium on its issue price, boosting market confidence.

The Journey So Far

MobiKwik’s rise from a mobile recharge platform to a comprehensive fintech solution provider showcases its resilience and adaptability. Its ability to innovate, coupled with strategic partnerships and a strong user base, positions it as a formidable player in India’s digital economy.

Learnings for Startups and Entrepreneurs

1. Adapt to Market Needs: MobiKwik’s shift from a recharge platform to a multi-service fintech provider underscores the importance of evolving with consumer demands.
2. Focus on Operational Efficiency: Positive EBITDA amidst losses highlights the value of optimizing operational costs.
3. User Base Growth: A robust user acquisition strategy is critical for sustained revenue growth.
4. Leverage Technology: MobiKwik’s success stems from leveraging technology to streamline services and enhance user experience.

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