Mobikwik posted its FY24 results

19 November 2024

• Financial developments: Gurugram-based fintech firm Mobikwik has reported a net profit of ₹14 Cr for FY24, a significant turnaround from a loss of ₹80.6 Cr the previous year. The company saw its operational revenue surge by 62% (y-o-y), reaching ₹875 Cr, up from ₹539 Cr in FY23. Mobikwik also recorded a net profit in the first half of FY24 and aims to maintain its profitability while continuing to deliver robust financial results. However, the company's lending operational expenses increased substantially, skyrocketing 294% to ₹270 Cr from ₹68.5 Cr in FY23. Notably, its payment processing expenses, which are crucial for payment firms, decreased to ₹200 Cr, growing at a slower pace from ₹148 Cr in FY23.
  
• Operational Developments: The company is strategically focusing on expanding its financial services, including credit and mutual funds, alongside its core offerings of UPI and mobile wallet payments. According to data from the National Payments Corporation of India, Mobikwik processed approximately 9.1 million UPI transactions in July. However, the number of new user additions has slowed, with only around seven million users added in the first half of FY24, compared to 16.3 million in FY23, as detailed in the draft red herring prospectus filed in January.
  
• Future Prospects: Mobikwik offers a feature called Zip EMI, which provides loans ranging from ₹10,000 to ₹2 lahks directly to customer's bank accounts, as well as a buy-now-pay-later option for amounts up to ₹60,000. The company is currently awaiting the final approval from the Reserve Bank of India for its payment aggregator license, which it received in principle in October of last year.