IPO-bound MobiKwik turns profitable in FY24; revenue climbs 62% to Rs 875 crore

Gurugram-based fintech firm MobiKwik has reported significant financial growth for the fiscal year ending March 2024. The company’s revenue surged to Rs 875 crore, marking an impressive 62% increase from Rs 539 crore in FY23.

The robust revenue growth enabled MobiKwik to achieve profitability, posting a net profit of Rs 14.08 crore, a remarkable turnaround from the Rs 83.8 crore loss reported in the previous fiscal year.

"We are delighted to have successfully transitioned from losses to full-year profitability. We’ve made a lot of progress in advancing our products and expanding our reach to smaller towns and cities where the country is currently witnessing increased digital growth,” said Upasana Taku, co-founder and chief financial officer (CFO) of MobiKwik.

Diversified revenue streams fuel growth

MobiKwik earned revenue from various sources, including commissions on recharge, processing fees, interest income from loan servicing, and revenue from payment gateways and technology platforms.

A significant factor in MobiKwik’s growth was the expansion of its loan offerings through strategic partnerships with lending institutions, which led to a threefold increase in lending operational costs, reaching Rs 270 crore from Rs 69 crore in FY23.

Cost management and operational efficiency

MobiKwik's total expenditure for FY24 rose by 36.4% to Rs 876 crore from Rs 642 crore in the previous fiscal year.

Notably, MobiKwik’s Return on Capital Employed (ROCE) and EBITDA margins improved to 15.21% and 4.18%, respectively.

The company posted a positive EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) of Rs 37.22 crore in FY24, compared to a loss of Rs 55.92 crore in FY23.

IPO plans back on track

In January 2024, MobiKwik filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise Rs 700 crore through an initial public offering (IPO).

This was the company’s second attempt to go public after an earlier effort in July 2021 was withdrawn due to unfavourable market conditions.