MobiKwik Records First Consolidated Profit In June Quarter, Posts 181% Increase In EBITDA

The company recorded a consolidated profit of Rs 3 crore and adjusted EBITDA of Rs 13.6 crore for the first quarter ended June 30.

Indian payment service provider MobiKwik reported it’s first-ever consolidated profit on Tuesday. The company recorded a profit of Rs 3 crore for the first quarter ended June 30. According to a PTI report, the company became the first fintech firm to report consolidated profit and hopes to maintain its growth trajectory. 

MobiKwik co-founder and COO Upasana Taku expects the company will “achieve full-year profitability”. The firm recorded a growth of 181 per cent on a year-on-year (YoY) basis in its adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of Rs 13.6 crore in the reported quarter, Taku said in a conversation with PTI. 

She also noted that this quarter marks the second consecutive one where the firm has reported a positive EBITDA. Taku also expressed hope for other startups to become profitable, stating that it will encourage the investment environment and investors’ sentiment in the country. 

The founder stated that MobiKwik has reported consistent growth with margins improving every quarter and without cash burn. “Our revenues grew to Rs 177 crores in the quarter, which is 68 per cent higher compared to the corresponding quarter last fiscal and contribution margin rose by 108 per cent to Rs 73.9 crore,” she said.

Taku further noted that the company posted a revenue of Rs 160 crore and an adjusted EBITDA of Rs 3 crore for the quarter ended March, 2023. Highlighting the fintech’s performance, she said, “In FY 2022-23, we achieved all the major goals we set for MobiKwik the previous year. First quarter has been a good start to the fiscal year. Our numbers are positive in all parameters, be it adjusted EBITDA, EBITDA or PBT (profit before tax).”

The company finished the fiscal year of 2022-23 with Rs 560 crore in revenue. Talking about the outlook for MobiKwik, the COO said, “We expect to deliver over 80 per cent topline growth for this fiscal year.”

The founder also noted that the company primarily earns through business from payment services and distribution of financial services including consumer loans, and more. Currently, the fintech has a registered user base of over 14 crore and about 40 lakh merchant partners.