Digital payments unicorn MobiKwik has clocked ₹540 crore in revenue for the financial year ending March 31, 2022, a nearly 79% increase from the previous fiscal, it said in a press statement on Friday.
The company said it achieved growth with a cash burn of Rs 72.5 crore, all of which was related to the first half as it turned EBITDA positive in the second half of the financial year 2021-22.
Currently, the firm generates revenue primarily from two segments: payments and digital financial services.
MobiKwik did not disclose its profit or loss figures for the financial year. The company had reported a loss of Rs 111.3 crore for FY21, as per its draft prospectus.
"The most significant milestone was turning EBITDA profitable in the second half, a rarity in the tech world which reflects our ethos of remaining at the forefront of fintech innovation, growing rapidly but with capital efficiency. With business now self-sustaining and the momentum growing, we remain confident of not only achieving our short-term financial goals but also a long-term objective of transforming into a full-service neobank," said Upasana Taku, co-founder, MobiKwik.
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.
The company stated that it witnessed close to 22 million new user additions in FY22, taking its total base of customers to roughly 127 million. Its digital financial services vertical constituted 5% of the FY22 consolidated gross merchandise value (GMV) and 20% of the overall revenue.
“As our digital financial services continue to outpace payments GMV, we expect its salience to overall revenue to only grow with time," said Taku.
The payments segment forms 80% of the consolidated revenue with a contribution margin of over 32%. We have remained profitable in this segment over the past 4 years with a steady uptick in margins. “These trends should debunk the questions around profitability in the payments space,” Taku said.
In July 2021, MobiKwik, backed by Sequoia Capital and Bajaj Finance, filed for an initial public offering (IPO) of up to ₹1,900 crore with Sebi. This came days ahead of its larger rival Paytm whose stock corrected post listing last year. Other new-age firms such as Zomato, PolicyBazaar and Nykaa which were 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.
