As per sources, the fintech platform, MobiKwik, became profitable in the March quarter and plans to nearly treble revenue to over Rs 1,000 crore in the current fiscal. The company ended the fiscal year 2022–2023 with a 39 percent increase in net sales, which was Rs 560 crore.The co-founder of the company, Upasana Taku, informed that “In 2023s fourth quarter, we recorded a profit. Now, my goal is for every quarter going forward to be profitable. About 40 percent less cash is being burned now. We aim to generate Rs 1,000 crore in revenue and Rs 40–50 crore in profit for FY24.”She further added that 50 percent of the companys revenue comes from the distribution of digital credit products and the rest from payments. There are now 4 million active credit users, up from 2 million. Over 75 percent of our users were first-to-credit customers, which is why we offer pay-later products. We were able to quickly test people using “Buy Now Pay Later.” We provide them with loan items once they have used the pay-later product, she added.Reportedly, the company has also withdrawn its plan to go for public listing which it filed in 2021.The co-founder Taku further said that the business does not require more fundraising because it is adequately funded and has sufficient internal accruals. In December 2021, MobiKwik raised money at a valuation of over USD 700 million. In addition, she also said that the company may need funds in case they opt for acquiring more companies.“We are a very much IPO-focused company. We will use this year to churn one after another profitable quarter. If we have 2-3 profitable consecutive quarters, then we will look for it (IPO). Right now, its wait and watch. I dont think the market is amenable for any tech internet company to go for listing,” Taku said.What all MobiKwik offersWith the help of MobiKwik, a user can make bill payments or recharges instantly. with money loaded in the app wallet, it just takes seconds for to mobile recharge or any other type of recharge. The company also covers all the top operators across India Airtel, Jio, MTNL, Vi, Dish TV, Tata Sky and more.In addition to making users pay and save on online purchases, MobiKwik also handles wealth management and credit options for consumers. Mutual funds, digital gold, instant loans, money transfers, pay-later options, and other services are available. Users of MobiKwik have the freedom to start small and expand their investment portfolio with a variety of investment possibilities by investing in the appropriate mutual fund starting at just Rs 100. Additionally, MobiKwiks spend now, pay later service, ZIP, allows users to receive a credit up to Rs 60,000 at NO COST to use for shopping, paying bills, and other purposes, making it simpler for them to manage cash shortages.MobiKwik looks to expand merchant businessAccording to the co-founder and the COO of the company, Upasana Taku, the company is planning to expand its merchant business, both on the lending and the liabilities side, in the coming financial year.MobiKwik has a user base of 135 million users and 4 million merchants. Of its users, 4 million are offered credit, primarily in the form of small-ticket credit for everyday uses like shopping, paying later, and EMI goods rather than open-ended loans like some of its competitors.The platforms AUM is somewhere in the neighbourhood of 600 crores, with an average transaction value of about 20,000. The high-margin financial services distribution sector, which generates 45 percent of MobiKwiks income, has also been targeted for expansion.
