Tuesday, 20 August 2024, Bengaluru, India
MobiKwik is an online payment platform BNPL Solutions that announced a 62 percent increase in operational revenue to Rs 875 crore in FY24. The startup provides a digital platform to enable consumers to send money and make encrypted payments. The application allows users to make electricity payments, gas bill payments, insurance services, and other payments. These rechange services, processing, interest on servicing loans, and technological platforms are the primary sources of revenue for the company. The startup offers several payment services using advanced technologies.
Entrackr mentioned in its report that the firm also earns its income through payment gateways and wealth management services. The lending operational costs for this financial year increased by three times through its loan offerings through lending partners to Rs 270 crore in FY24. The payment gateway also increased by 18.4 percent to Rs 201 crore in the same duration. The company has secured over 269 million USD across multiple funding rounds, including $6.7 million raised during a debt funding round led by Larnation in 2022. The data intelligence platform, tracxn mentioned that Sequoia Capital is the largest institutional investor of the firm.
MobiKwik allows users to invest in different platforms and sectors while managing their investment portfolio. The online platform uses advanced technologies to provide the best customer experience. This fintech startup allows users to manage and make secure and safe transactions. The legal, marketing, telephone postage, hosting, employee benefits, and other expenses increased the total costs by 36.4 percent to Rs 876 crore in FY24. The startup had a 60 percent increase in shares which reduced the net loss to Rs 14 crore in the same duration. However, the startup had an annual revenue run rate of Rs 561 crore in FY23.
The fintech company focuses on improving its business model while offering more innovative fintech solutions, positioning it well in the global market. The startup intends to control its losses by reducing operating expenses and employee benefits. The company filed for its SRHP with the market regulator SEBI in January to raise Rs 700 crore through its Initial public offering. The EBITDA margin improved and stood at 4.16 percent while the ROCE also went positive to 15.21 percent. The company faces competition from other payment processing platforms such as Paytm, Phone, and MoneyGram.
Conclusion:
MobiKwik announced a 62.3 percent increase in operational revenue to Rs 875 crore in this financial year. The fintech startup offers a digital payment platform and other services including loaning services. The income from servicing loans is the major source of revenue for the company. The company has investors including Peak XV Partners and Sequoia Capital. The startup reported a profit of Rs 14 crore in FY24. The total expenditure of the firm increased by 36.4 percent and crossed Rs 876 crore in the same duration. The company plans to reduce its expenses on employee benefits to minimize its losses. The employee benefits, marketing, telephone postage, hosting, and other costs increased the total expenses by 36.4 percent in the same duration.
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