MobiKwik, a prominent fintech unicorn, has declared its emergence into net profitability during the first quarter (Q1) of the current financial year (FY24). The company unveiled a profit after tax (PAT) of INR 3 crore and an adjusted EBITDA of INR 13.6 crore for Q1 FY24. This marks a significant rise from its adjusted EBITDA of INR 3 crore in Q4 FY23.
MobiKwik Vision for Profitability and Strong Q1 Performance
Bipin Preet Singh, the co-founder and CEO of MobiKwik, articulated the company’s vision, stating, “In FY 2022-23, we achieved all the major goals we set for MobiKwik the previous year, and our vision for FY 2023-24 is to achieve profitability in all quarters. Q1 has been a good start to the fiscal year.”
MobiKwik Impressive Revenue and Margin Growth
MobiKwik reported a robust 68% year-on-year (YoY) increase in revenue during Q1, reaching INR 177 crore. Furthermore, its contribution margin experienced a remarkable 108% YoY surge, reaching INR 73.9 crore. In the preceding Q4 of the last fiscal, MobiKwik had generated INR 160 crore in revenue.
Steady Growth and Expansion Plans
Although MobiKwik is yet to file its FY23 financial statements, it asserts that it concluded FY23 with INR 560 crore in revenue. Notably, the company’s contribution margin surged from INR 42 crore in FY22 to INR 169.5 crore in the past year.
Future Goals and Expansion Strategy
Looking ahead, MobiKwik has ambitious goals for FY24. The startup anticipates achieving over 80% top-line growth while targeting a net profit ranging from INR 40 crore to INR 50 crore. Bipin Preet Singh emphasized the startup’s focus on expanding its presence in tier 3 and 4 cities and towns and venturing into offering financial products to small merchants. Singh expressed confidence in the growth potential of India’s smaller communities and aims to tap into this burgeoning market.
Founded in 2009 by Bipin Preet Singh and Upasana Taku, MobiKwik is a notable digital banking platform offering a diverse range of financial products for both consumers and merchants, including payments, digital credit, and investments. The company achieved unicorn status in October 2021 and competes with other prominent players in India’s fintech landscape such as Paytm, Freecharge, and Simpl, as well as industry giants PhonePe and Google Pay. MobiKwik’s shift to profitability aligns with the ongoing trend of tech startups increasingly prioritizing sustainable financial growth.
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