Fintech giant MobiKwik has showcased a strong performance in Q2 FY25, signaling its intent to turn profitable soon. The company reported significant revenue growth alongside a sharp reduction in losses, setting a positive trajectory for its future.
Key Financial Highlights
- Revenue Surge: MobiKwik's revenue grew by 43% year-over-year, reaching ₹291 crore, compared to ₹203 crore in Q2 FY24.
- Loss Reduction: The net loss narrowed to ₹3.5 crore, a notable improvement from ₹6.62 crore in the previous quarter (Q1 FY25).
- Core Segments Shine: Revenue from its payment services nearly tripled, climbing from ₹66.7 crore to ₹187.7 crore in a year.
Operational Milestones
- Growing User Base: The platform now has 167 million registered users, up 13% year-over-year. Its merchant network has also expanded to 4.4 million.
- Selective Lending: While MobiKwik scaled back its small-ticket lending product 'Zip' due to macroeconomic pressures, it remains committed to financial inclusion through innovative credit offerings.
Our Opinion on the News
MobiKwik's Q2 FY25 results highlight steady progress toward profitability. Here’s our analysis:
- Positive Revenue Momentum: The 43% revenue jump reflects strong operational growth, particularly in payment gateway services, which continues to drive its top line.
- Controlled Losses: The halving of net losses shows improved cost management, a critical step for any fintech aiming for profitability.
- Challenges in Lending: While the selective approach to credit disbursement is prudent in a volatile economy, it has temporarily impacted revenue from financial services.
Overall Verdict: MobiKwik is positioning itself as a leading digital payments player. With its growing user base, diversified revenue streams, and focus on innovation, the company is well-placed to achieve profitability in the near future.
Source: ISN