IPO-Bound MobiKwik Posts INR 6.6 Cr Loss In Q1

IPO-bound MobiKwik posted a net loss of INR 6.6 Cr in the June quarter of the financial year 2024-25 (Q1 FY25) against a profit of INR 3 Cr in the year-ago period. 

It is pertinent to note that Q1 FY24 was the maiden profitable quarter for MobiKwik. The company had also posted a net profit of INR 14 Cr in FY24 against a loss of INR 83.8 Cr in the previous year.

Operating revenue stood at INR 342.2 Cr during the quarter under review. The company had generated an operating income of INR 875 Cr in FY24 and INR 539.5 Cr in FY23.

Including other income of INR 3.5 Cr, the fintech major reported a gross revenue of INR 345.8 Cr for the quarter ended June 30, 2024.

Earlier today, it was reported that MobiKwik filed its RHP with market regulator SEBI, slashing the size of its public issue to INR 572 Cr from the INR 700 Cr IPO previously planned.

The company said it plans to use the fresh proceeds from the IPO to expand its payment and financial services businesses and further its R&D capabilities.

Founded in 2009 by Bipin Preet Singh and Upasana Taku, MobiKwik is a digital banking platform that offers a suite of financial products for both consumers and merchants.

The fintech company generates revenue by providing consumer payments, buy now pay later (BNPL), and payment gateway services. 

The startup has also launched a sound box product, Vibe, to take on Paytm and PhonePe. Notably, MobiKwik entered the unicorn club in October 2021.

The company competes against the likes of Paytm, Freecharge, and Simpl, PhonePe and Google Pay in India’s burgeoning fintech market, which is expected to reach a market size of $2.1 Tn by 2030.

Where Did MobiKwik Spend In Q1?

MobiKwik incurred expenses to the tune of INR 343.6 Cr in the June quarter of FY25. For context, the fintech major’s total expenses stood at INR 853 Cr in FY24 and INR 617 Cr in FY23.

Payment Gateway Cost: This emerged as the biggest expense head for the fintech giant in Q1 FY25. The company spent INR 127.6 Cr towards payment gateway charges during the period under review.

Lending Operational Cost: Lending operational expenses is primarily the expense incurred by the startup towards payment of certain charges to banks and NBFCs, including facilitation fees and technology fees, for disbursing loans under MobiKwik ZIP and ZIP EMI. 

The spending under this bucket stood at INR 92.4 Cr in Q1 FY25.

Employee Benefits Expense: MobiKwik spent INR 39.2 Cr in employee costs in the June quarter of the ongoing financial year. This included employee stock options expense of INR 3 Cr.

Business Promotion: The company spent INR 33.7 Cr towards business promotion expenses in Q1 FY25. This included user incentive expenses of INR 16.3 Cr.