MobiKwik posts Rs 3.59 crore loss in Q2FY25, total income grows 42%

The Gurugram-based company's total income rose 42 per cent year-on-year (Y-o-Y) to Rs 293.66 crore in Q2FY25 from Rs 206.83 crore in Q2FY24

Fintech firm MobiKwik reported a consolidated net loss of Rs 3.59 crore in the July-September quarter (Q2) of the financial year 2024-2025 (FY25) as compared to the net profit of Rs 5.22 crore in Q2FY24. Sequentially, the company trimmed its losses from Rs 6.61 crore in Q1FY25.

 

The company’s stock price jumped to an intra-day high of Rs 638 after the earnings were published, and closed 9.25 per cent higher at Rs 609 per share on the BSE.

 

The Gurugram-based company’s total income rose 42 per cent on a year-on-year (Y-o-Y) basis to Rs 293.66 crore in Q2FY25 from Rs 206.83 crore in Q2FY24. Sequentially, total income declined 15 per cent from Rs 345.8 crore in Q1FY25.

 

 

Revenue from payments nearly tripled from Rs 66.7 crore in Q2FY24 to Rs 187.7 crore in Q2FY25. Sequentially, too, this segment grew 9.4 per cent from Rs 171.5 crore in Q1FY25.

 

In contrast to payments' revenue growth, the company’s income from financial services, including lending products, declined 24.7 per cent from Rs 136.7 crore in Q2FY24 to Rs 102.9 crore in Q2FY25. Sequentially too, it declined 39.7 per cent from Rs 170.7 crore in Q1FY25. 

 

The company said it is following a ‘selective stance’ in disbursing credit products. It is scaling down small ticket lending product ‘Zip’ due to macroeconomic factors.

 

“With a focus on controlling fixed cost, the company continues to work on balancing growth and profitability, by increasing market share and launching innovative products,” the firm said in its earnings release.

 

On a Y-o-Y basis, expenses at the company rose 46.34 per cent to Rs 286.86 crore in Q2FY25 from Rs 196.01 crore in Q2FY24. However, the firm cut down on its expenses by 16 per cent on a quarter-on-quarter (Q-o-Q) basis from Rs 343.59 crore in Q1FY25.

 

Payment gateway costs accounted for nearly half of the company’s total expenses in Q2FY25. These costs more than tripled from Rs 43.16 crore in Q2FY24 to Rs 135.65 crore in Q2FY25. In Q1FY25, payment gateway costs were recorded at Rs 127.6 crore.

 

The fintech firm, which listed on the bourses last month, had a registered user base of 167 million customers as of September 2024, up 13.6 per cent on a Y-o-Y basis. Cumulatively, it had over 4.4 million merchants.

 

MobiKwik added 5.7 million users and 0.14 million merchants in Q2FY25. The company’s gross merchandise value (GMV) was pegged at Rs 28,280 crore during the same quarter.

 

Going ahead, the firm would focus on products such as Pocket UPI, RuPay credit card on UPI, Bill Payments and move to monetise its merchant network.