MobiKwik expects a twofold growth in revenue this financial year, rebounding from a decline last year, said Upasana Taku, the fintech firm’s co-founder.
“We will be ending this fiscal year at around ₹550 crore-₹600 crore, which could be a 2x growth (from the previous fiscal),” Taku said in an interview. She said the company may also achieve break even in the next financial year.
Mobiwik, which has approval from the Securities and Exchange Board of India (Sebi) to float a public issue, posted an 86% rise in total income at ₹396.5 crore in the nine months ended 31 December, up from ₹212.6 crore a year earlier, according to a company statement. MobiKwik recorded total income of ₹302.25 crore in 2020-21.
Its adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda) loss expanded to ₹ 78.46 crore in the nine-month period from ₹57.9 crore a year earlier.
Taku said in the December quarter alone, the company achieved cash breakeven for the first time in the company’s history and is expected to remain positive not only in the March quarter but in the next financial year as well.
Growth came from across its business segments comprising consumer payments, buy now pay later (BNPL), and payment gateway as well as other businesses. Taku said consumer payments is continuing to lead the businesses with 70% contribution to revenue followed by BNPL (20%) and payment gateway and others at 10%.
Taku said with the regulatory approval already in place for the public issue and improvement in financials, the company is ready to go public but is waiting for markets to be amenable. Markets have been volatile since Russia’s invasion of Ukraine that has prompted other companies to push back their IPOs as well.
In July 2021, MobiKwik, backed by Sequoia Capital and Bajaj Finance, filed for an IPO of up to ₹1,900 crore with Sebi. This came days ahead of its larger rival Paytm whose stock took a huge beating post listing last year. Other new-age firms such as Zomato, PolicyBazaar and Nykaa which listed last year also faced the brunt of the market volatility.
Last October, MobiKwik also turned into a unicorn, or a private company with a valuation of at least $1 billion via a secondary transaction. In the last equity fundraise in June 2021 from Abu Dhabi Investment Authority, it was valued at $700 million. MobiKwik, which was founded in 2009, defines itself as a fintech company providing payment solutions through mobile wallets and BNPL channel.