MobiKwik registers 133 pc rise in revenue for FY20 with cash losses down 91 pc

MobiKwik, the Gurugram-headquartered fintech company, has registered a 133 percent annual rise in revenue for FY20, with cash loss down to just Rs 9 crore. The company expects to maintain this momentum and achieve profitability in the current financial year.

Founded in 2009 by Upasana Taku and Bipin Preet Singh, MobiKwik reported a net revenue of Rs 379 crore for FY20 as against Rs 162 crore in FY19.

The company has been very close to break-even in FY20 as the cash EBITDA loss stood at Rs 9 crore as compared to Rs 98 crore in FY19. The EBITDA loss for FY20 was Rs 45 crore — a decline of 63 percent compared to the previous financial year.

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Talking to YourStory, Upasana said, “Growth has been fantastic for us and it has been across all our three businesses.”

MobiKwik has three business segments: consumer payment, financial services, and payment gateway.  The fintech company, which has around 120 million users and three million retailers, competes against the likes of Paytm, PhonePe, and Google Pay.

According to Upasana, the growth registered by MobiKwik has been due to its differentiated strategy and deploying capital in an efficient manner.

In the consumer payment business segment, MobiKwik registered a 159 percent rise in revenue to touch Rs 230 crore for FY20. Though, at the same time the user incentives during this period grew by only 30 percent.

Upasana said, “We are retaining our customers and acquiring new ones at lower cost while also adding new payment cases.”

In the fintech segment, MobiKwik recorded a net revenue of Rs 91 crore, which was a 216 percent annual rise. The payment gateway business of the company recorded a revenue of Rs 190 crore for FY20 as compared to Rs 101 crore in FY19.

Upasana expects this momentum of growth to continue for MobiKwik in the coming years. “We are going to grow over 100 percent in the next ten years in a capital-efficient and profitable manner,” she remarked.

In fact, MobiKwik’s contribution margin (CM) increased by 233 percent to Rs 199 crore for FY20, and company said it has been CM positive since October 2018. In fact, in the month of March, it registered a net revenue of Rs 38 crore with an adjusted EBITDA loss of Rs 8 lakh only.

Though the spread of COVID-19 did have an impact on MobiKwik, especially in the month of May and June, it expects a return to normalcy from the end of August or September of this year.

MobiKwik currently has around 325 employees and the revenue per employee has risen to Rs 1.27 crore in FY20 as against Rs 0.4 crore in the previous year.

“We are going to grow profitably even in such a hyper-competitive environment,” says Upasana.