Mobikwik’s Q2 Profit: A Remarkable Turnaround
Mobikwik, one of India’s prominent digital payment platforms, has recently achieved a significant milestone by posting a profit of Rs 5 crore in the second quarter.
This accomplishment is particularly noteworthy considering the intense competition in the digital payments space and the challenges businesses have faced in recent years.
Founded in 2009 by Bipin Preet Singh and Upasana Taku, Mobikwik started as a prepaid mobile and DTH recharge platform.
Over the years, it has evolved into a full-fledged digital payments platform, offering services like mobile recharges, utility bill payments, travel bookings, and online shopping.
With its foray into the financial services sector, the platform now provides users with options such as loans, insurance, and investment opportunities.
A top corporate executive has stated that fintech startup MobiKwik aims to retain its pace in the current fiscal year after posting a consolidated profit of Rs 5 crore in the third quarter of 2023.
For the firm’s public offering in June 2024, the business will assess its position in light of current performance and market conditions.From Rs 136.9 crore in the quarter ending in September 2022, its revenue increased by 52 percent to Rs 208 crore during the reporting quarter.
In the quarter ending in June 2024, the firm reported its first-ever profit after tax of Rs 3 crore and revenue of Rs 177 crore.
According to him, the company’s main goal is to expand profitably while not using up capital.
“We continue to create innovative solutions that guarantee more financial inclusion, adding value for consumers, small enterprises, and merchants throughout the innovative Bharat. We are making investments to make our product the standard for digital banking, according to Singh.
“Our digital credit and payment company has grown well. The digital credit industry has expanded more quickly. We have now seen three successful quarters in a row, the second of which was at the PAT level (profit after taxes).
With this, we can see that the growth momentum we are seeing is positive. We anticipate keeping it up for the remainder of the year,” Singh added.
He claimed that although individuals outside of metro areas and tier 1 cities have access to banking and a wide range of financial products, they are barely aware of their potential.
We have a fantastic opportunity here. We introduced MobiKwik Lens, a data-driven tool on its platform, to meet the needs of this market sector.
It provides information on the financial health of middle-class Indians. They are not aware of the return that investments may yield. In the upcoming months, we would concentrate on this area, Singh added.
Beyond just being a digital wallet, Mobikwik expanded its offerings to encompass credit, insurance, and other financial products. These new revenue streams likely contributed significantly to its bottom line.
Reports suggest that Mobikwik undertook stringent cost-cutting measures, focusing on streamlining operations and reducing overheads, which translated into healthier profit margins.
Mobikwik has consistently been forging partnerships with a variety of businesses, from e-commerce platforms to brick-and-mortar stores. These collaborations have expanded its user base and transaction volumes.
The company has managed to retain a loyal customer base, thanks to its customer-centric approach, innovations in offerings, and security features.
Mobikwik’s profit is a testament to the viability of digital payment platforms in India, even in a market that seems saturated with players like Paytm, PhonePe, and Google Pay. It is a beacon of hope for other fintech startups that profitability can be achieved with the right strategies in place.
Moreover, in a time when many startups are prioritizing growth at the cost of profitability, Mobikwik’s financial performance serves as a reminder that a balance between growth and profits is both desirable and achievable.
With increased profits, Mobikwik can further invest in enhancing its technological infrastructure, ensuring smoother and more secure transactions for its users.The profit gives them the leeway to experiment with new services or expand its existing ones to cater to a larger audience.
While retaining its existing customer base, Mobikwik can now ramp up its efforts to bring new users onboard, further strengthening its position in the market.
Mobikwik’s Rs 5 crore profit in Q2 is a significant achievement that underscores the potential of strategic growth and diversification in the fintech sector. It remains to be seen how the company will leverage this success in the coming quarters, but it undoubtedly sets a positive precedent for both Mobikwik and the broader digital payments landscape in India.
