IPO-bound MobiKwik posts 79% increase in revenue growth YOY

Mobikwik Payments app

Digital payments company MobiKwik said it recorded a revenue of INR 540 crore for the financial year ended March 31, 2022, up nearly 79% from the previous fiscal year.

According to the company’s draft IPO prospectus, the company recorded total revenue of INR 302.25 crore for the year ended March 31, 2021. Mobikwik’s IPO has been stuck in a valuation landscape fintech regulates more deeply.

In a prepared statement on Friday, MobiKwik said that it incurred a cash burn of INR 72.5 crore for the year to achieve this revenue, and that it was earnings before interest, taxes, depreciation, and amortization (EBITDA) positive in the second half of FY22.

Upasana Taku, Co-founder of MobiKwik, said, ” The most significant milestone was turning Ebdita 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.”

Taku added, “As our digital financial services continue to outpace payments GMV, we expect its salience to overall revenue to only grow with time.”

MobiKwik has been given the green light by the Securities and Exchange Board of India (Sebi) to conduct an initial public offering (IPO) of Rs 1,900 crore.

The company did not disclose its overall profit or loss figure for a financial year. The company reported a loss of INR 111.3 crore for fiscal year 21, according to its draft prospectus.

Currently, the company generates revenue mainly from two segments: payments and digital financial services.

According to the company, they saw nearly 22 million new user additions in fiscal year 22, bringing their total customer base to around 127 million. Additionally, its digital financial services vertical accounted for 5% of 22nd year consolidated gross merchandise value (GMV) and 20% of total revenue.

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