News Update

MobiKwik revenues surpasses Rs. 525 crore in FY22


MobiKwik, a supplier of digital payment solutions, recovered in FY22 and surpassed Rs 525 crore in revenue. When compared to the fiscal year that ended in March 2021, when the pandemic had shrunk in scope by 20%, the Gurugram-based company’s revenue increased by 82.6%. (FY22). 

According to the company’s annual financial records filed with the Registrar of Companies, MobiKwik’s operating income increased to Rs 526 crore in FY22 from Rs 288 crore in FY21 (RoC). Consumer payments, payment gateway services, and Buy Now Pay Later (BNPL) financial products make up the bulk of MobiKwik’s revenue sources.

It’s significant that MobiKwik did not disclose the revenue breakdown in their papers. The business also generates additional revenue, the majority of which comes from interest on non-current investments, which increased by 22% to Rs 16.6 crore in FY22. 

Payment gateway expenses become Mobikwik’s largest cost centre, accounting for 34% of total expenses. In FY22, this expense rose by 51% to Rs 228 crore. Other essential charges that made up 17% and 16% of the total costs were those for employee benefits and advertising/promotion. To Rs 113 crore and Rs 107 crore, respectively, these costs jumped by 30% and 102% in FY22.

MobiKwik

For bank loans taken out by consumers on its BNPL platform, MobiKwik offers financial assurances and covers associated costs. In FY22, these costs increased by 57% to Rs 91 crore. It operates the BNPL product Zip, which states to have a user base of 2.8 million active users and over 25 million pre-approved BNPL consumers. 

The firm, which is run by Bipin Preet Singh and Upasana Taku, also incurred operational costs for lending of Rs 19 crore and Rs 18 crore, raising the total cost by 61.4% to Rs 665 crore in FY22. 

MobiKwik has managed to control losses, which increased 15.3% to Rs 128 crore in FY22 from Rs 111 crore in FY21, despite an 82% increase in scale.To put it another way, each unit of operating revenue cost the business Rs 1.26. 

MobiKwik has shown great growth while keeping costs under control, but it is still a long way from breaking even. Even though the company anticipates becoming profitable by FY24, it still has to deal with regulatory issues. The company’s application for a payment aggregator was denied by the Reserve Bank of India (RBI) because it didn’t match the net-worth requirements. It apparently submitted a new application after that.

The company has suspended its IPO ambitions while it considers its own options. Due to the poor performance of the majority of startups, including Paytm, its fintech rival, Mobikwik is once again cast in the background. The startup will be praying that the market doesn’t go any worse from here, since that could imperil funding for a much longer time, as fundraising of some kind is likely to be necessary for some time.

 

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