NewKerala.com

Key Points

MobiKwik, a Gurugram-based fintech firm, has reported a significant quarterly loss of Rs 56.03 crore in Q4 FY25, marking a stark contrast to its previous year's performance. Despite the financial challenges, the company demonstrated robust user growth, expanding its customer base to 176.4 million and adding 20.6 million new users in the fiscal year. The company's leadership, particularly Co-founder Upasana Taku, remains optimistic about future growth, with plans to leverage artificial intelligence for revenue enhancement and operational efficiency. The firm's annual revenue showed a promising 33.9% increase, reaching Rs 1,192.49 crore, indicating potential for future recovery.

Key Points: MobiKwik Reports Rs 56 Crore Loss Despite User Growth

  • Fintech company reports Rs 56 crore loss in Q4 FY25
  • User base grows to 176.4 million with 20.6 million new customers
  • Revenue increases 33.9% annually to Rs 1,192.49 crore
  • Company plans AI-driven automation for future growth
2 min read

Fintech firm MobiKwik reports wider loss of Rs 56 crore in Q4

Fintech firm MobiKwik experiences wider quarterly loss while expanding user base to 176.4 million and focusing on AI-driven strategies

"The payments business showed remarkable strength, growing threefold YoY - Upasana Taku, Co-founder"

New Delhi, May 20

Fintech company MobiKwik has reported a wider consolidated loss of Rs 56.03 crore in the fourth quarter of the financial year 2024–25 (Q4 FY25), compared to a small loss of just Rs 67 lakh in the same quarter last fiscal (Q4 FY24).

The company’s loss also increased from Rs 55.2 crore in the previous quarter (Q3 FY25), according to its stock exchange filing.

For the full financial year FY25, MobiKwik recorded a loss of Rs 121.5 crore. This is a major setback for the Gurugram-based firm, which had posted a profit of Rs 14 crore in the previous fiscal year (FY24).

MobiKwik's revenue from operations in Q4 saw a slight year-on-year (YoY) growth of 1.43 per cent, rising to Rs 267.78 crore from Rs 264.98 crore in Q4 FY24.

However, compared to the previous quarter, the revenue slipped by 0.6 per cent from Rs 269.47 crore.

On an annual basis, the company’s revenue saw a solid 33.9 per cent growth, climbing to Rs 1,192.49 crore in FY25 from Rs 890.31 crore in FY24.

The company’s expenses continued to rise sharply. In Q4, total expenses rose by 22 per cent YoY to Rs 324.28 crore, up from Rs 265.70 crore in a year-ago period.

Sequentially, expenses also went up by 2.2 per cent from Rs 317.14 crore in Q3. For the full year, expenses surged by 49 per cent to Rs 1,271.88 crore in FY25, compared to Rs 853.09 crore in FY24.

A major part of the spending came from payment gateway costs, which stood at Rs 147.05 crore in Q4. This accounted for over 45 per cent of the company’s total quarterly expenditure.

Despite the widening losses, MobiKwik continued to grow its user and merchant base. The company recorded 176.4 million users by the end of FY25, adding 4.4 million new customers in the fourth quarter alone.

Over the full year, 20.6 million users joined the platform. On the merchant side, MobiKwik had 4.59 million merchants, with 76,000 added in Q4FY25 and 0.53 million throughout FY25.

Commenting on the performance, Upasana Taku, Executive Director, Co-founder and CFO of One MobiKwik Systems, said that the payments business showed remarkable strength, growing threefold YoY.

She also highlighted that the company will focus on leveraging AI in the coming year to drive revenue growth and improve margins through intelligent automation.

MobiKwik shares were trading at Rs 277.3 on Tuesday, down by Rs 1.65 or 0.59 per cent on the National Stock Exchange (NSE).

- IANS

Share this article:

Reader Comments

R
Rahul K.
Not surprised by these losses. MobiKwik has been spending heavily on marketing and cashback offers. While user growth looks good, they need to focus more on profitability. Indian fintech space is getting crowded with PhonePe and Google Pay dominating. Hope they turn around soon 🤞
P
Priya M.
As a small merchant using MobiKwik, their services are quite good. But these losses make me worried about long-term sustainability. The 33% revenue growth is promising though. Maybe they should reduce cashback offers and focus more on merchant services which have better margins.
A
Amit S.
Payment gateway costs eating up 45% of expenses is alarming! They need to renegotiate these contracts or develop in-house solutions. Indian startups must learn to balance growth with fiscal discipline. Too many are burning cash chasing market share.
S
Sunita R.
The AI focus sounds interesting but I hope it's not just buzzwords. Many companies talk about AI but don't implement properly. MobiKwik should first fix their basic unit economics before jumping on the AI bandwagon. Still, rooting for this homegrown player!
V
Vikram J.
From profit to loss in one year is disappointing. Shows how competitive the payments space has become. But 176 million users is no small achievement. If they can monetize this base better, there's hope. Maybe diversify into lending or wealth management?
N
Neha P.
I appreciate MobiKwik for being one of the few Indian alternatives to foreign payment apps. But these financials show they're struggling. Government should support domestic fintech players more through policies. We can't let our digital payments be controlled only by American companies.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50