MobiKwik turns profitable in Q3 FY22

Fintech India is a very large & profitable opportunity. MobiKwik, one of the largest mobile wallets and the largest BNPL fintech, is a participant of this rapidly evolving ecosystem. We firmly believe that it is possible to deliver strong growth without incurring high cash burn. 

Here’s how we did in the 9 months of FY22 – 

MobiKwik created HISTORY by making a PROFIT for the first time since inception in Q3 FY22 (the quarter ending December 2021).

Total Revenue grew 86% ↑ YoY to INR 396 crores

Growth was broad based across segments

We continue to ride the Digital Payments wave in India where millions of new users and businesses adopt Digital as a way of life every month. Our results reflect robust revenue growth across all business segments i.e. Consumer Payments, BNPL and Payment Gateway. All our businesses have been growing at positive contribution margin for 2+ years without sacrificing on growth.

Total GMV grew 152% ↑ YoY to INR 257 billion           

Consumer payment grew 144% ↑ Y-o-Y – Helped by the ongoing structural shift in India towards digitization of payments as well as MobiKwik’s strong customer acquisition funnel 

BNPL grew 840% ↑ Y-o-Y – MobiKwik’s first mover-advantage, a strong user funnel leveraging its consumer payments platform coupled with a 3.5m strong merchant ecosystem (online + offline) has led to ever increasing user adoption and engagement with monthly spends of ~INR3,245 and 81% repeat rate  

Payment gateway grew 212% ↑ Y-o-Y – Like consumer payments, payment gateway too is helped by the ongoing shift towards digital payments and was helped by our ability to cross-sell to merchants onboarded for consumer payment.

Buy Now Pay Later is seeing strong traction

Today we have the largest BNPL approved users in India at 25 million. We saw record growth numbers in BNPL & with +ve contribution margin.

1)     BNPL GMV grew spectacularly ↑ 840% YoY

2)     Active BNPL (Zip) users grew ↑ to 2.4M

3)     Zip credit loss provision came ↓ to 1.77% 

4)     Zip transactions grew ↑ to 14.4M

Strong growth is not at the cost of cash burn

Our strategy of focusing on sustainable growth has helped us invest aggressively at the right places i.e., on people and technology without incurring high cash burn and sacrificing growth. We have spent cumulatively Rs3.7bn (US$50m) since FY19 to grow the revenue ~2.5x in the same time period.

In our 9M FY22 results, we have demonstrated fast-paced & profitable growth with the right business model.

This is just the beginning.

With focus & persistence, anything is possible.

To read the 9M FY22 results, please visit our blog.

To read the 9M FY22 audited financial statements, please visit our IR website.