Gurugram-headquartered digital financial services platform MobiKwik has said that it earned revenues of INR 184.6 Cr in the fiscal year ending March 31, 2019. The company has continued to post over 100% growth in its revenue for the last three years.
This growth has come in with exit revenue growing 3.5x in March 2019. Further, the company has continued to bank on its focus of lower middle-class users who have helped it plan EBITDA breakeven by the end of 2019. In simple terms, the contribution margin includes revenue excluding loading cost and marketing incentives.
This year the company claims to have halved its EBITDA burn as well as post positive contribution margin for the financial year 2018-19.
Founded in 2009 by Bipin Preet Singh and Upasana Taku, MobiKwik has gone from being an ewallet to a horizontal fintech platform. This was due to the introduction of services such as UPI, credit card payments, loans and credit line, insurance, mutual funds, digital gold investment, and instant redemption of mutual funds.
MobiKwik: Key Performance Milestones For FY19
Earlier talking to Inc42, Singh said that the company’s USPs are “Low customer acquisition cost, inbuilt scoring model, and quick disbursal are our key differentiators.” Here’s a look at key metrics of MobiKwik in the year:
- 40% growth in total registered users and 90% growth in MAUs (Monthly Active Users)
- 18 Mn credit cards issued in India saved on MobiKwik
- Over 11% of UPI addresses issued in India are @iKwik handles issued by MobiKwik
- MobiKwik has originated over 350K fully digital loans with a loan book which stands at $ 24 Mn
- MobiKwik’s payment gateway business clocked $ 3 Bn in total payment volume
- First acquisition in October 2018 – Clearfunds, a consumer direct mutual fund investment platform to speed up its wealth management product portfolio
- MobiKwik issued 70K loans in May 2019 and 1 lakh applications are received every month
The Potential Of Fintech Platforms In India
Digital transactions in India are slated to touch $1 Tn by the year 2025, a white paper by ACI Worldwide along with AGS Transact Technologies showed. At the same time, the user base for digital transactions is also rapidly growing with increased digitisation and mobile phone penetration.
According to a report by Niti Aayog titled Digital Payments – Trends, Issues and Opportunities, the digital payment industry is expected to reach $1 Tn by 2023.
According to the ‘Indian Tech Startup Funding Report 2018, last year saw a sharp decline of 51.6% in the amount invested in fintech startups as compared to 2017, which is an indication of saturation in the Indian fintech sector, where licensing is going to be a decisive factor for VC investments in startups.