Digital payments firm Mobikwik has announced a consolidated net loss of Rs 3.59 crore for the second quarter of FY25, marking a shift from the Rs 5.22 crore profit recorded in Q2 FY24. Mobikwik’s total income for Q2 FY25 increased by 41.98% year on year to Rs 293.66 crore, up from Rs 206.83 crore in Q2 FY24. However, compared to the previous quarter, income decreased by 15.08% from Rs 345.82 crore in Q1 FY25.
Mobikwik indicated that it took a “prudent and selective approach” in the distribution of credit products during Q2 FY25 to adapt to current macroeconomic conditions and reduce risks. The company reduced its offerings for the small-ticket credit product ‘ZIP’, which offers instant credit for transactions. The gross merchandise value (GMV) disbursed for ZIP fell by 35.4% quarter on quarter to Rs 950 crore in Q2 FY25. Meanwhile, ZIP EMI, a credit product featuring a higher ticket size, experienced a 22.9% QoQ decline in GMV, down to Rs 675.8 crore.
The company stated its focus on **quality over quantity** in loan disbursements, emphasising risk-adjusted growth. This approach notably impacted revenue from financial services, which plummeted to Rs 75.7 crore in Q2 FY25, falling sharply from Rs 136.7 crore in Q2 FY24.
Noteworthy increases were observed in payment gateway costs, which surged by an astounding 214.3% year on year to Rs 135.65 crore in Q2 FY25, compared to Rs 43.16 crore in the corresponding quarter last year. Employee benefits expenses also experienced a considerable rise of 72.49% year on year, reaching Rs 43.59 crore.
Total expenses for the quarter reached Rs 286.86 crore, reflecting a 46.34% increase from Rs 196.01 crore in Q2 FY24, though it saw a sequential decrease from Rs 343.59 crore in Q1 FY25.
After September 30, 2024, Mobikwik established a waiver agreement with a lending partner. As part of this agreement, the company decided to relinquish Rs 24.21 crore in income from Q1 FY25, which was then adjusted against the current quarter’s revenue. In return, the partner waived Rs 42.16 crore in facilitation fees, chiefly related to Q1 FY25, resulting in lower current quarter expenses.
Operationally, Mobikwik added 6 million new users, boosting its overall user base to 167 million, and onboarded 1.4 lakh new merchants, increasing the merchant count to 44 lakh. MobiKwik made an impressive market debut on December 18, 2024, with shares closing at Rs 530 each on the Bombay Stock Exchange, nearly doubling the IPO price of Rs 279. The stock climbed 90.07% from the issue price and 19.91% from the debut price, finishing at Rs 530.30 by market close. MobiKwik’s IPO, open for bidding from December 11 to 13, 2024, became the second-most subscribed new-age tech IPO in India, with subscriptions reaching 119.38 times.
