MobiKwik’s FY23 Loss Declines 35% To INR 84 Cr, Operating Revenue Flat

Delhi NCR-based fintech unicorn MobiKwik’s net loss fell 35% in the financial year ended March 31, 2023. The startup reported a net loss of INR 83.8 Cr in the financial year 2022-23 (FY23) as against a loss of INR 128.1 Cr in the previous fiscal year. The startup’s net loss stood at INR 110 Cr in FY21. 

The decline in loss can be attributed to the decrease in MobiKwik’s expenditure. Total expenses fell 5% to INR 617 Cr in FY23 from INR 652.5 Cr in FY22. Payment gateway charges, the biggest contributor to total expenses, plunged 31% to INR 156.6 Cr from INR 227.6 Cr in the previous fiscal year

The startup’s financial guarantee expenses for bank loans taken by users on its platform rose marginally to INR 109.5 Cr in FY23 from INR 90.7 Cr in the previous fiscal year. However, the startup’s lending operational expenses grew by 289% to INR 68.5 Cr in FY23 from INR 17.6 Cr it had spent in the previous fiscal year.

Employee benefit expenses, another big contributor to total expenses, fell 8.4% to INR 98.2 Cr in FY23 from INR 107.2 Cr in FY22. Employee benefit expenses comprise employee salaries, PF contributions, gratuity, among others. According to LinkedIn, the startup has around 879 employees.

MobiKwik also almost halved its advertising expenditure to INR 4.4 Cr during the year under review from INR 8.4 Cr in the previous year. 

On an unit economics level, the startup spent INR 1.1 to earn every single rupee from operations. 

While MobiKwik managed to reduce its loss and expenditure, its operating revenue remained flat in FY23. The startup reported an operating revenue of INR 539.4 Cr during the year under review, a marginal uptick from INR 526.5 Cr in the previous fiscal year. 

MobiKwik generates revenue through consumer payments, buy now pay later (BNPL), and payment gateway services. Recently, the startup also launched a sound box product, Vibe, that is similar to that of similar offerings of Paytm and PhonePe. 

Once an IPO-bound startup, MobiKwik claims to have reported a profit after tax (PAT) in the first two quarters of FY24. The startup claimed it posted a PAT of INR 3 Cr in Q1 FY24 and INR 5 Cr in Q2 FY24. 

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. Its products range from payments and digital credit to investments. The startup joined the unicorn club in October 2021.

It competes with the likes of Paytm, Freecharge, Simpl, PhonePe and Google Pay and in the fintech space.

MobiKwik, like many other startups, filed its draft red herring prospectus (DRHP) with markets regulator SEBI in 2021 for an INR 1,900 Cr IPO. However, it cancelled its IPO plans due to market volatility.