Mobikwik Growth

The company's revenue has increased several times, with the consumer payments sector accounting for 47.51% of total revenue from operations and achieving positive segment results after accounting for payment gateway and user incentive expenses across the board. This year, however, the Buy now pay later sector has expanded dramatically and currently accounts for 33.94% of the company's overall revenue.

Mobikwik's losses increased by more than 15.2% in FY22, although revenue from operations increased. However, the firm has been successful in the BNPL sector since its consumer payments segment provides significant competitive advantages for the BNPL segment, such as brand memory, a huge current KYC user base, big data to assess user creditworthiness, and a vast merchant ecosystem. Because the aforementioned building elements are in place, the company has a solid foundation from which to expand the BNPL business in a scalable and lucrative way.

Earnings declined, causing EPS to fall in FY22. The company's payment gateway expenses have grown, as have its user incentive charges, resulting in lower profitability. The number of shares in the firm has increased by 15,97,661 due to stock splits and bonus problems.

The company's book value jumped abruptly due to an increase in its security premium, which offset losses transferred to reserves, and its common equity increased due to the issuance of bonus shares and a share split.

The company's operational profit is negative this year as a result of a decline in revenue, a rise in payment gateway costs, and an increase in staff costs. There is still a large growth possibility in the category, and as the firm works towards its goals, it has the potential for rapid development in the future.

Mobikwik has closed a Rs. 150 crs. funding round from Abu Dhabi Investment Authority which provides the expected valuation of the company more than $700 million ahead of its public listing slated for the end of 2022. The company is expected to utilize the funds to increase its asset base. The company is also working to make its technology base stronger which may lead to improvement in asset growth.

The company's cash from operations has worsened due to a growth in other financial assets such as security deposits and other recoverable assets, while other current assets such as advances to vendors and suppliers have also grown.

Whereas the bank balance with the third party in Nodal and Escrow accounts has climbed, which further led to decrement in the company's cash inflow.