MobiKwik Posts First-Ever Profit in December 2021 Quarter Ahead of IPO

IPO-bound fintech agency MobiKwik grew to become worthwhile within the December 2021 quarter and expects to shut the present monetary 12 months with virtually two occasions progress in income, a prime firm official has stated.

MobiKwik co-founder and Chief Operating Officer Upasana Taku informed PTI that the corporate recorded revenue of round Rs. 7 crore within the third quarter of 2021-22, after dropping cash within the first and second quarters.

“In the last quarter, the company achieved profitability for the first time. We expect to be profitable in the fourth quarter as well. We expect our full financial year (FY) of 2022-23 to be profitable.

“This actually validates our idea and the message that we’ve been giving that it’s doable within the Indian fintech house to construct a quick tempo progress mannequin whereas on the identical time generate profits,” Taku said.

Sharing details of the nine-month period ended December 31, 2021, Taku said the company has achieved revenue of around Rs. 400 crore, which is 86 percent growth on a year-on-year basis.

“Given this, we count on that we are going to be closing the 12 months at Rs. 550-600 crore which is 2 occasions of our final monetary 12 months,” Taku said.

She said in order to achieve Rs. 300 crore of revenue in FY’21, the company had a cash burn of Rs. 98 crore, which is negative 32 percent in terms of EBITDA as percentage to revenue.

“To attain this Rs. 400 crore we’ve total losses of Rs. 78 crore for the 9 month interval, which is destructive 19 %. This is a large enchancment from destructive 32 % to 19 % for the 9 month interval,” Taku said.

She added that there are traditional financial institutions which are clocking huge profits but their growth rate is in the range of 20 percent, and then there are startups which are showing 100-150 percent growth but are hugely loss making.

“I feel that is the high-quality steadiness that MobiKwik as a late-stage, mature firm is making an attempt to straddle the place we’re capable of showcase 100% income progress and on the identical time reaching break-even,” Taku stated.