India: Digital payments startup MobiKwik looks to become profitable this year

visual from the company website

Digital payments and financial services startup MobiKwik said its revenue grew by 133% year-on-year to 379 crore in 2019-20. It also reduced its Ebitda loss by 60% to 45 crore in FY20.

The startup now aims to become profitable by the end of FY21, said a top executive.

MobiKwik has three business lines — consumer payments, financial services (which houses its digital lending, insurance and mutual fund offerings) and payment gateway.

“We have grown our revenue 100% year on year and reduced our (cash) burn significantly. This March was our best month ever, where we clocked revenues of 38 crore and our burn was merely 8 lakh,” said Upasana Taku, co-founder, MobiKwik.

“We have done everything to rationalise our costs, and believe that our fintech vertical can now be scaled much faster. In the next two fiscals, financial services will be garnering the same revenues as our consumer payments business,” added Taku.

In the consumer payments vertical, MobiKwik saw its net revenue double to 230 crore in FY20 compared to 89 crore in FY19. While, its financial services vertical also witnessed 3x growth, with revenues climbing to 91 crore in FY20.

Digital wallet continues to be a big part of its consumer payments business, as it looks to keep the customer in its ecosystem with a digital lending credit line.

“Consumers make payments through our wallet and are also offered a credit line, hence they make more payments using our wallet and it becomes a cycle. Unlike competition we do not try to focus on UPI, as we see no monetisation there,” Taku said.

Zaakpay’s revenue through MobiKwik is not included in the total revenue of the digital payment startup.

With covid-19 impacting digital payment firms, MobiKwik saw a 30% dip in transaction volumes on its platform and expects to climb up to 85% of pre-covid transactions by July-end.

“We are increasingly working on bundling our products (payments, credit and financial services), and make stronger revenues. For credit we will focus on health, education and daily life expenses which is critical to the user,” said Taku.

This article was first published on livemint.com.

 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.