The company expects to clock annual revenue of Rs 550 crore – Rs 600 crore by the end of FY22, nearly double from last year, MobiKwik cofounder Upasana Taku told ET. In FY21, MobiKwik had registered a total income of Rs 302 crore, according to its regulatory filings.
Earnings before interest, taxes, depreciation and amortisation (Ebitda) losses widened to Rs 78.4 crore for the first nine months compared to Rs 57.9 crore in Ebitda loss for the same period in FY21.
The losses were on account of MobiKwik’s growth being affected during the first two quarters of FY22 due to the second Covid-19 wave, Taku said.
The company, which received approval from markets regulator, the Securities and Exchange Board of India (Sebi) for its Rs 1,900 crore initial public offering in October last year, is looking to turn profitable in FY23.
“We achieved a cash break even for the previous quarter which ended in December last year. This is the first time in MobiKwik’s history that we have achieved cash breakeven in any quarter. Looking at our performance, we are confident that we will eventually turn overall profitable in the next fiscal, as we continue our growth,” Taku to ET.
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“We have also brought down overall (loan) default rates from 5.2% in March 2021, affected due to Covid-19, to 1.77% in December 2021. Now, our focus for the coming year will be to scale our BNPL business and focus on full-year profitability,” Taku added.
At present, 70% of MobiKwik’s revenues comes from consumer payments, with buy-now-pay-later (BNPL) offering, MobiKwik Zip, and other financial services contributing to 19% of the fintech’s overall revenues.
Revenues from MobiKwik’s payment gateway business Zaakpay contributes another 11% of the company’s overall income.
According to MobiKwik, the company has 25 million pre-approved BNPL users, 2.5 million of which are active.
The company also said that the total value of digital transactions processed on its platform more than doubled to Rs 21,221 crore in the first nine months. The total value of BNPL transactions on the platform also grew to Rs 1057.7 crore during the period.
Markets uncertainty affects IPO
Last year, MobiKwik said it planned to delay its IPO after Paytm parent One97 Communications’ lacklustre market debut.
Over the past months, India’s listed new-age companies have seen a slump in stock prices, as their value eroded for a variety of reasons, most recently Russia’s invasion of Ukraine.
Life Insurance Corporation of India (LIC) also filed draft papers for an IPO this year, however, the ongoing Ukraine-Russia crisis may affect its listing timelines.
Other startups such as Delhivery and PharmEasy have also got Sebi’s approval for their IPOs but are unlikely to launch them this financial year.
“We have the Sebi approval for our IPO valid for a year, and will take a call on public listing basis the market conditions. The current volatility is unheard of, and we have to respect the markets. We will be taking a call once the markets stabilise. Until then our focus will be to show quarter-on-quarter growth as well as become overall profitable,” said Taku.
