Mobikwik Reports Strong FY24 Performance with Rs 14 Crore Profit

Mobikwik, the Gurugram-based fintech firm, has reported a remarkable financial turnaround for FY24, posting a net profit of Rs 14 crore. This is a significant rebound from the Rs 80.6 crore loss reported the previous year. The company’s operational revenue surged by 62%, reaching Rs 875 crore compared to Rs 539 crore in FY23, reflecting a strong year of growth and profitability.

Profitability and Revenue Growth

The impressive financial results are bolstered by a continued profitable streak, which Mobikwik maintained throughout the first half of FY24. The company's revenue growth highlights its successful strategies in expanding its financial services and user base. “We are thrilled with our financial performance this year and are committed to sustaining this growth trajectory,” said Upasana Taku, co-founder of Mobikwik.

Increased Operational Expenses and Strategic Focus

Despite the positive financial results, Mobikwik saw a sharp increase in its lending operational expenses, which jumped 294% to Rs 270 crore from Rs 68.5 crore in FY23. In contrast, payment processing expenses, which are crucial for any payment firm, decreased slightly to Rs 200 crore from Rs 148 crore the previous year. This shift indicates a strategic pivot towards expanding its financial services portfolio while managing core expenses.

Expansion into Financial Services

Mobikwik has been aggressively expanding its financial services, including credit and mutual funds, in addition to its core UPI and mobile wallet payment offerings. The company processed around 9.1 million UPI payments in July, demonstrating its growing presence in the digital payment space.

User Growth and New Offerings

However, Mobikwik's new user additions have slowed down, with approximately seven million new users in the first half of FY24, compared to 16.3 million in FY23. Despite this, the firm continues to innovate with new products such as Zip EMI, which offers loans between Rs 10,000 and Rs 2 lakh, and buy-now-pay-later options up to Rs 60,000.

Regulatory Approvals and Future Outlook

Mobikwik also holds an in-principle approval from the Reserve Bank of India for a payment aggregator license, received in October last year. This approval is expected to further strengthen its market position. Taku emphasized, “Our focus for the coming year is to upscale our products and services while continuing to expand our reach to smaller towns and cities witnessing increased digital growth.”