IPO-bound Mobikwik turns profitable in FY24; posts Rs 14 crore profit

New Delhi: IPO-bound fintech firm Mobikwik on Tuesday said it has posted a profit of Rs 14.08 crore in FY24, its first fully profitable fiscal year.

The company competes with fintech firms like Paytm, PhonePe etc and has become first among its peers to turn profitable.

Mobikwik had posted a loss of Rs 83.81 crore in the financial year (FY) 2023.

"We are delighted to have successfully transitioned from losses to full-year profitability. We have brought very interesting innovative products on our platform and…used machine learning and data that has helped us to cross-sell better," Mobikwik co-founder Upasana Taku told PTI.

She said that the non-payment revenue of Mobikwik is just over 50 per cent for us.

"This means we have been able to get active users and merchants to experience one or more financial products. We have made a lot of progress in advancing our products and expanding our reach to smaller towns and cities where the country is currently witnessing increased digital growth. To close out the year, strength in our business was driven by our growing user base and revenue from our financial services business," Taku said.

When asked about listing timelines, Taku said the company is eagerly waiting for markets regulator Sebi to approve its draft prospectus for IPO and it intends to go for listing as early as possible after required approvals are in place.

Mobikwik's total income grew by 58.67 per cent to Rs 890.32 crore in FY24.

The company has become a leader in the wallet business after the shutdown of Paytm wallet.

Taku said the company has been among the top two wallet players.

She said the share of wallet increased to around 23 per cent in May from about 11 per cent in March.

Its last fundraise of USD 20 million from Abu Dhabi Investment Authority (ADIA) took place in July 2021 at an enterprise valuation of Rs 5,000 crore.

The latest valuation of the company will be known at the time of listing, Taku added.

As of July 2024, Mobikwik had 15.7 crore registered users and 40 lakh merchants.