MobiKwik Slips Into Red, Posts INR 55 Cr Loss In Q3

Fintech major MobiKwik slipped into the red in the third quarter of the fiscal year 2024-25 (Q3 FY25), hurt by lower financial services revenue and higher lending-related costs. The company reported a consolidated net loss of INR 55.28 Cr during the quarter under review against a profit of INR 5.27 Cr in the year-ago quarter.

On a quarter-on-quarter (QoQ) basis, net loss zoomed multifold from INR 3.59 Cr.

The fintech company posted an EBITDA loss of INR 42.67 Cr in Q3 FY25 on a consolidated level against an EBITDA profit of INR 10.82 Cr in the corresponding quarter last year. It had posted an EBITDA profit of 6.80 Cr in the preceding September quarter.

Operating revenue shot up nearly 18% to INR 269.47 Cr in the December quarter of FY25 from INR 228.93 Cr in the same quarter last year. Sequentially, the top line declined over 7% from INR 290.64 Cr.

Including other income of INR 4.99 Cr, MobiKwik’s total revenue stood at INR 274.46 Cr during the quarter under review.

The financial services business contributed 26.6% to the company’s top line in Q3 FY25. Revenue from this vertical declined over 16% year-on-year (YoY) and 38% QoQ to INR 73 Cr in the December quarter of the ongoing fiscal year. 

The payments business continued to be the biggest revenue stream for MobiKwik. Revenue from the distribution of payment products surged 12.2% YoY and 18.9% QoQ to INR 196.5 Cr in Q3 FY25.

In its earnings release, MobiKwik said it onboarded 5 Mn new users during the quarter under review, bringing its total user base to 172 Mn. With 110K new merchants added in Q3 FY25, the fintech major now has a 4.5 Mn-strong merchant base.

“While focusing on controlling fixed costs, the company strives to balance growth and profitability by increasing market share and launching innovative products,” MobiKwik said in a statement.

Where Did MobiKwik Spend In Q3?

The rise in expenditure outpaced the growth in revenue of the fintech major. Total expenses surged almost 44% to INR 317.14 Cr in Q3 FY25 from INR 220.55 Cr in the corresponding quarter last year.

Payment Gateway Cost: This was the biggest expense head for the fintech major in Q3 FY25. The spending under this bucket zoomed 183% to INR 143.70 Cr in the September-December quarter from INR 50.83 Cr in the year-ago period.

Employee Cost: The spending under this bucket climbed 56% to INR 44.3 Cr during the quarter under review from INR 28.44 Cr in Q3 FY24. Sequentially, employee benefits expenses rose marginally from INR 43.59 Cr.

Lending Operational Cost: Lending operational expenses are 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 declined 69% to INR 24.78 Cr in the quarter ended December 2024 from INR 79.08 Cr in the year-ago quarter. However, it rose 41% from INR 17.59 Cr on a QoQ basis.

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

The company made its stock market debut in December 2024, with its shares listing at a 58.5% premium on the BSE.

Shares of MobiKwik closed Tuesday’s trading session 1.34% lower at INR 400.80 apiece on the BSE.