About 86 percent increase seen by MobiKwik In its nine-month revenue
- ByStartupStory | March 9, 2022
About 86 percent increase in its nine-month revenue to Rs 396.6 crore posted by IPO-hopeful MobiKwik, led by strong growth in its consumer payments, BNPL (buy now, pay later), and payment gateway businesses. The startup has been projecting between Rs 550 and Rs 600 crore in its revenue, for the full year.
On December 21, adjusted loss (EBITDA) for the nine months ended, however, as expenses related to people and technology continued to make a dent, in the year-ago period it widened from Rs 57.9 crore to Rs 78.4 crore.
Upasana Taku, Co-founder and COO, MobiKwik, said in a statement that the startup broke even for the first time in its history, for the third quarter ending December 21. In the ongoing fourth quarter, it expects to post a profit and for the full financial year, she added.
In the nine months all three businesses at MobiKwik showed strong growth, including the youngest buy now, pay later unit, which also contributes to the overall revenue that is less than 25 percent. The startup, however, is fleshing it out and pushing more aggressively to get new users, since the margins are higher in this unit versus others.
The average ticket size of MobiKwik for BNPL loans, at present, is Rs 3,245. As of December-end versus nearly 5 percent earlier, its provision for credit losses improved to 1.77 percent, even as it made out more BNPL loans. It is a testament to the startup’s superior underwriting practices.
This year, they have been looking to grow BNPL, as well as our payment gateway. There are a couple of newer products that have been launched by them, where they were more focussed on the 0 to 10X growth. As far as MobiKwik’s IPO roadmap goes, they have planned to still list on the Indian exchanges. Also an appropriate license has been received from SEBI.
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