Mobikwik turns profitable in March quarter, expects to double revenue

Upasana Taku, the company’s co-founder, said that fintech platform Mobikwik became profitable in the March quarter and expects to nearly double revenue to over Rs 1,000 crore in current fiscal along with profitability for the full year.

The company ended the 2022-23 financial year with net revenue growing by 39% at Rs.560 crore.

“In the fourth (fourth) quarter of 2023, we book a dividend. Now my target is for it to be a profitable quarter from now on. We have reduced cash burn by about 40 per cent. For FY24, we want to achieve Rs 1,000 crore revenue and profit of Rs 40 -50 crore,” Taku told PTI.

It said 50 percent of the company’s revenue came from distributing digital credit products and the rest from payments.

“Active credit users increased from 2 million to 4 million. The reason we have pay later products is because more than 75 percent of our users were first credit customers. Buy Now Pay Later helped us test users in a period Short period of time. After using the pay later product, we give them the loan products,” Taco said.

The company has withdrawn its plan for a public listing that it had submitted in 2021.

“We’re a company that’s very focused on IPOs. We’re going to use this year to have one profitable quarter after another. If we’ve had two or three consecutive quarters that are profitable, we’ll definitely go for it (the IPO). Now it’s time to wait and watch. I don’t think so,” Taco said. The market is ready for any technology Internet company to be listed.”

She said the company is well funded and has sufficient internal accruals and therefore does not require additional fundraising.

Mobiquick last raised funds at a valuation of around $700 million in December 2021.

“We may need money if we choose to acquire companies,” Tacco said.

(Only the title and image for this report may have been reworked by the Business Standard team; the rest of the content is generated automatically from a shared feed.)

First published: May 01, 2023 | 9:59 p.m ist