Mobikwik, a fintech platform, became profitable in the March quarter and expects to nearly double revenue to over Rs 1,000 crore in the current fiscal year, along with full-year profitability, according to cofounder Upasana Taku. The company ended the fiscal year 2022-23 with a 39% increase in net revenue of Rs 560 crore.
“We made a profit in the fourth quarter of 2023.” Now, my goal is to make every quarter profitable from now on. We have cut our cash burn by roughly 40%. Taku stated, “For FY 24, we want to achieve Rs 1000 crore revenue and Rs 40-50 crore profit.”
She stated that the distribution of digital credit products accounted for 50% of the company’s revenue, with payments accounting for the remainder.
Number of credit active users has gone up from 2 million to 4 million. The reason we have pay-later products is that more than 75% of our users were first to credit customers. Buy Now Pay Later helped us in testing users in short span of time. After they have used the pay later product, then we give them loan products, Taku said.
The company has withdrawn its plan to go public, which it filed in 2021. We are an IPO-focused company, and we will use this year to churn out one profitable quarter after another. If we have 2-3 profitable quarters in a row, we will definitely consider an IPO. Right now, it’s a case of wait and see. I don’t believe the market is conducive to any tech internet company going public. Taku stated.
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She stated that the company is well funded and has sufficient internal accruals, so no additional fundraising is required.
Mobikwik last raised funds in December 2021 at a valuation of around USD 700 million.
“We may need funds if we decide to acquire companies,” Taku said.
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