MobiKwik revenue grows over 100 pc in FY19; on road to profitability in FY20
The fintech company which is targeting an IPO in the next three years wants to provide financial services to the underserved market in India.
MobiKwik reported an over 100 percent increase in revenue for financial year 2018-19, and is on target to turn operationally profitable in FY20 with plans for an IPO in three-years' time.
Regulatory filings showed MobiKwik reported a revenue of Rs 184.6 crore for FY19, as against Rs 85.6 crore in FY18, up 116 percent on year. The fintech company has evolved over the years to focus on three businesses - digital payments, financial services and payment gateway.
Founders of MobiKwik: Upasana Taku (L) and Bipin Preet Singh (R).
Also read: Why MobiKwik wants to IPO in 2022 and here's what it's doing to get there
MobiKwik Co-founder and COO Upasana Taku said:
"We have seen all the waves... We have grown to have the seat at the table to capitalise when the country will have 700 million digitally active users."
In the last financial year, MobiKwik witnessed 40 percent growth in registered users, 90 percent growth in monthly active users, $3 billion processed through its payment gateway, and $55 million disbursed across 3.5 lakh loans.
However, the bright spot for MobiKwik in FY19 was its positive contribution margin across all Its business segment. Contribution margin is revenue generated minus the loading cost of the customer and the marketing incentives.
Upasana says, "We are closer to being operationally profitable in the later part of the current financial year." MobiKwik was contribution margin positive for each month in the second half of FY19. It also said the EBITDA burn had halved In FY19 as compared to FY18.
The fintech company has been making a big push towards financial services over the last one year, which include getting into areas such as small ticket size loans, insurance, gold purchases, mutual fund investments etc. "We want to bring all money related services to the consumers," says Upasana.
MobiKwik believes it is able to make financial services accessible to a wider section of the population by coming out with products that are affordable. The fintech company provides credit starting from as low as Rs 2,000, going up to Rs 1 lakh. "We believe that everybody deserves access to financial credit," says Upasana.
MobiKwik disbursed over 70,000 fully digital loans in May 2019 from the one million applications it receives every month. The target is disburse over Rs 1,500 crore across 1.2 million loans in FY 2020.
Also read: No snoozing for UPI - 20x growth since last April
