Mobikwik, a Gurugram-based digital payments and financial services company, has achieved impressive financial results for the quarter ended September 30, 2023. The company recorded revenues of Rs 208 crore, marking a 17% sequential increase. Additionally, Mobikwik posted a total profit of Rs 5 crore for the same period. This success can be attributed to the company’s strong focus on its credit strategy, which now contributes almost 60% of its revenue.
According to Bipin Preet Singh, the co-founder and CEO of Mobikwik, the company has been contribution-margin positive for the last three to four years. He stated that the company’s lack of profitability was primarily due to the disruption caused by the Covid pandemic, particularly in the credit sector. However, these recent profits indicate that the company has achieved a break-even point, and Singh anticipates high double-digit profits in the future.
Singh revealed that credit now accounts for approximately 60% of Mobikwik’s revenue, with the remaining revenue generated from digital payments. By the end of the fiscal year 2023, the credit contribution to the company’s total revenue stood at 51%. Mobikwik boasts a user base of 140 million, with approximately 35 million active users.
In addition to its credit and digital payments services, Mobikwik has expanded its business to include wealth management. The company distributes mutual funds and offers a peer-to-peer lending product called Xtra. Singh highlighted Mobikwik’s focus on catering to audiences that earn up to Rs 50,000 per month and ensuring they have access to high-quality financial service products. The company is also developing an analytics platform called Lens, which will allow users to gain a better understanding of their financial health.
Overall, Mobikwik’s financial performance in FY23 was encouraging. The company achieved a total revenue of Rs 561 crore, representing a 3.3% increase from the previous year. Additionally, Mobikwik reduced its losses to Rs 83.3 crore in FY23 from Rs 128.1 crore in the previous fiscal year.
In conclusion, Mobikwik’s focus on its credit strategy has driven its consecutive profitable quarters and revenue growth. With a strong user base and expansion into wealth management, the company is well-positioned for future success in the digital payments and financial services industry.
