Fintech company One Mobikwik has reported a consolidated loss of Rs 55.28 crore for the third quarter of FY25, primarily due to soaring payment gateway costs. Despite this setback, the company experienced an 18% increase in revenue year-over-year, showcasing resilience in its operations.
Key Takeaways
- Mobikwik’s consolidated loss reached Rs 55.28 crore in Q3 FY25.
- Payment gateway costs surged nearly three-fold to Rs 143.7 crore.
- Revenue from operations increased by 18% to Rs 269.47 crore.
- The gross merchandise value (GMV) for payments grew to Rs 29,400 crore.
- The registered user base expanded by 14% to 17.2 crore.
Financial Overview
In its latest financial report, One Mobikwik disclosed a significant downturn compared to the same quarter last year, where it had posted a profit of Rs 5.27 crore. The drastic increase in payment gateway costs, which rose from Rs 50.83 crore in the previous year to Rs 143.7 crore, has been a major factor in this loss.
Despite the financial challenges, Mobikwik’s revenue from operations showed a positive trend, climbing to Rs 269.47 crore from Rs 228.93 crore in the previous year. This growth indicates that the company is still managing to attract more business, even as costs rise.
Growth Metrics
- Revenue Growth: The company reported an 18% increase in revenue, reflecting its ability to generate more income despite rising costs.
- Gross Merchandise Value (GMV): The GMV for payments skyrocketed to Rs 29,400 crore, a significant increase from Rs 9,600 crore a year ago.
- Payments Revenue: Payments revenue more than doubled, reaching Rs 196.5 crore compared to Rs 73.9 crore in the previous year.
User Base Expansion
Mobikwik’s registered user base has also seen substantial growth, increasing by 14% to 17.2 crore users. This growth is complemented by a 16.2% year-over-year increase in its merchant base, which now stands at 45.1 lakh.
Future Outlook
Upasana Taku, the Executive Director and Co-founder of One Mobikwik, expressed optimism about the company’s future. She highlighted the ongoing investments in product innovation and development, which are expected to support long-term growth and profitability. With a successful IPO behind them, Mobikwik is confident in its strategy to navigate the current challenges and drive sustainable growth.
In conclusion, while Mobikwik faces significant challenges due to rising payment gateway costs, its revenue growth and expanding user base indicate a potential for recovery and long-term success in the competitive fintech landscape.