MobiKwik Reports Q3 FY25 Financial Results

Quarterly Growth Overview

MobiKwik, the prominent fintech platform, published its financial results for the third quarter of the current fiscal year (Q3 FY25) on the stock exchange today, showcasing a 17.5% increase compared to the previous year.
According to the consolidated financial statements retrieved from the National Stock Exchange (NSE), MobiKwik’s operational revenue surged to Rs 269 crore in Q3 FY25 from Rs 229 crore in Q3 FY24. Despite this growth, the earnings of MobiKwik experienced a decline of 7.6% in Q3 FY25, dropping from Rs 291 crore in Q2 FY25.

Revenue Streams

In Q3 FY25, MobiKwik’s primary avenues for revenue comprised commissions from recharges, processing fees, and interest generated from loan servicing, payment gateways, and technology platforms. The company chose not to provide a detailed income breakdown in its quarterly report. Notably, there was a remarkable increase in MobiKwik’s payment business, which grew by 166% to Rs 196.5 crore in Q3 FY25.

User Base Growth

The latest press release indicates that MobiKwik’s registered user base has expanded to 167 million, alongside 5 million merchants. Additionally, the total payment gross merchandise value (GMV) exhibited a year-on-year doubling, reaching Rs 29,400 crore.

Expenditure Analysis

On the expenditure front, costs associated with the payment gateway constituted the largest expense, making up 45.4% of the total costs, which amounted to Rs 144 crore in Q3 FY25. The costs attributed to employee benefits and lending fees were noted at Rs 44 crore and Rs 25 crore, respectively. Furthermore, the overall expenditures, which encompass financial guarantees, legal fees, advertising, finance, and other overheads, escalated by 44.1% to Rs 317 crore in Q3 FY25, compared to Rs 220 crore in Q3 FY24. For instance, during the previous fiscal year (FY24), the company recorded a net profit of Rs 14 crore.

Net Loss Reporting

In a challenging turn, MobiKwik declared a net loss of Rs 55.2 crore for Q3 FY25, contrasting with a profit of Rs 5.1 crore reported in the corresponding quarter of the previous fiscal year. Over the first nine months of the current fiscal year, the company’s bottom line reflects a negative figure of Rs 65.4 crore.

Stock Market Performance

MobiKwik made its stock market debut on December 24 last year, achieving an impressive 59% premium over its issue price on the first day of trading. Currently, the company’s shares are trading at Rs 406.75 (as of 14:25) with a total market valuation of Rs 3,160 crore, which is approximately $376 million.