Fintech platform MobiKwik unveiled its financial performance for Q2 FY25, showing impressive growth in revenue despite posting a net loss. The quarterly results, shared via the National Stock Exchange (NSE), reflect the company’s focus on scaling operations and strengthening its user base.
Revenue Surges Amid Declining Earnings
MobiKwik’s revenue jumped to Rs 290.6 crore in Q2 FY25, a 43% increase compared to the same quarter last year. In contrast, its earnings saw a 15% decline from the previous quarter’s Rs 342 crore. This mixed performance has put the spotlight on its expenditure and profit margins.
The revenue boost primarily came from services like commissions on recharges, payment gateways, interest income from loan services, and technology platforms. However, the quarterly report didn’t offer a detailed income breakdown, leaving investors curious about the company’s core revenue drivers.
User Base and Payment GMV Witness Strong Growth
MobiKwik’s user base grew by 13.6% year-on-year, reaching 167 million registered users. On the merchant side, the platform now supports 4.4 million businesses. These figures underscore the company’s expanding ecosystem, which is critical in a competitive fintech market.
Notably, the payment GMV (gross merchandise value) surged by 3.67 times to Rs 282.8 billion, highlighting the increasing adoption of MobiKwik’s payment solutions. This growth signifies a strengthening foothold in digital payments, an area where scale often determines success.
Rising Costs Weigh on Profitability
While revenue grew, rising costs continued to eat into MobiKwik’s profitability. The company’s expenditure soared 47.9% year-on-year to Rs 287 crore in Q2 FY25, up from Rs 194 crore in the same period last year.
Here’s a breakdown of key expenses:
- Payment gateway costs: Rs 136 crore (47% of total expenses)
- Employee benefits: Rs 43.5 crore
- Facilitation fees: Rs 17.5 crore
- Other overheads: Legal, financial guarantees, advertising, and miscellaneous costs contributed significantly.
Such rising costs have raised questions about the scalability of MobiKwik’s business model as it balances growth with profitability.
EBITDA and Stock Market Performance
Despite the net loss of Rs 3.5 crore in Q2 FY25, MobiKwik reported a positive EBITDA of Rs 3.5 crore. This marks a recovery from the Rs 5.2 crore profit recorded in Q2 FY24. Positive EBITDA indicates operational efficiency, even as the company faces financial headwinds.
MobiKwik’s recent debut on the stock exchange has added another layer of interest. After launching with a stellar 59% premium on its issue price, the company’s stock has settled at Rs 601.9 as of the latest trading session. With a market capitalization of Rs 4,676 crore (approximately $556 million), the fintech firm remains a significant player in the digital payments space.
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