MobiKwik Achieves Profitability After 15 Years and Gears Up for IPO

MobiKwik, the digital financial services platform, has marked a significant achievement by reporting its first-ever full-year profitability for FY24 after 15 years of operating at a loss. The company announced a Profit After Tax (PAT) of ₹14.08 crore, a substantial turnaround from the ₹83.81 crore loss in FY23. This milestone has boosted MobiKwik’s confidence as it prepares for its Initial Public Offering (IPO), with filings submitted to the Securities and Exchange Board of India (SEBI) in January 2024.

Co-Founder and CFO Upasana Taku shared with CNBC-TV18 that MobiKwik is on track to go public, anticipating SEBI’s approval soon. Taku expressed optimism about the company’s future, emphasizing ongoing innovation and growth in the fintech sector. She noted that the company’s path to profitability was the result of persistent effort and strategic approaches over the years.

MobiKwik has successfully scaled its user and merchant base to over 150 million users and 4 million merchants. Initially focusing on payments, the company has diversified its offerings to include credit, savings, and insurance products. These financial products now account for 60% of its revenue, with payments contributing the remaining 40%. The company’s effective cost management, with a 59% revenue increase and a reduction in fixed costs as a percentage of revenue, has also played a crucial role in achieving profitability.

Looking ahead, Taku expects the revenue mix to remain balanced between payments and financial products, with each contributing about 50-55% of revenue. MobiKwik aims to be the go-to app for users and small merchants for all their financial needs.