MobiKwik, the leading fintech platform, announced its financials for the second quarter of fiscal year 2025 (Q2 FY25), which indicates a significant revenue growth despite net loss. The company reported a revenue from operations of ₹290.6 crore, a significant increase from ₹203 crore in the same quarter last year, reflecting a robust 43% quarter-on-quarter growth.
PC: Moneycontrol
Revenue growth was led by the income of MobiKwik from different sources such as commissions on recharge, processing fees, and interest income from servicing loans and payment gateways. The company reported a 15% fall in earnings to ₹342 crore for the previous quarter (Q1 FY25), meaning that although year-over-year performance was good, sequential growth faced headwinds.
MobiKwik has witnessed a significant growth in its user base, with a 13.6% year-on-year increase to 167 million registered users and 4.4 million merchants using its services. Additionally, the company’s Gross Merchandise Value (GMV) from payments has increased by 3.67 times year-on-year, reaching ₹282.8 billion. This growth is indicative of MobiKwik’s increasing presence in the digital payments space.
On the expenditure side, MobiKwik has incurred increasing costs with payments gateway, which have constituted 47% of total costs, amounting to ₹136 crore in Q2 FY25. Employee benefits and facilitation fees have also added to the costs, at ₹43.5 crore and ₹17.5 crore, respectively. Overall, the company’s total expenditure increased by 47.9%, rising to ₹287 crore from ₹194 crore during Q2 FY24.
Despite achieving a positive EBITDA of ₹3.5 crore, MobiKwik ended the quarter with a net loss of ₹3.5 crore, a stark contrast to the ₹14 crore profit recorded in the previous fiscal year. This shift underscores the financial challenges the company faces as it scales operations and invests in growth.
MobiKwik recently debuted on the stock market with a remarkable 59% premium over its issue price. The company’s shares are now trading at ₹601.9, valuing the firm at around ₹4,676 crore or $556 million. The strong opening in the stock market reflects investor confidence in MobiKwik’s growth potential, despite the current financial losses.
In the short term, MobiKwik’s management would focus on increasing operational efficiencies and enhancing revenue streams to reduce the losses. The fintech space remains dynamic, with various players in the digital payments space challenging each other through competition. Hence, MobiKwik would have to continue adapting to this changing landscape with its growing user base to make it successful.
Overall, results from Q2 FY25 manifest a company in transition, with massive revenue growth still needing to be balanced by profitable traction. Overall growth in the user base and GMV are on the right path for the company, but the substantial net loss argues for strategic need based adjustments. Thus, growth and operational efficiency will be the keel between which MobiKwik will balance its way to sustainable profitability in this dynamic fintech landscape. Investors and stakeholders will be closely watching how the company manages these challenges in the upcoming quarters.
