MobiKwik Bets On Scaling Payments, Product Distribution To Drive Growth After Slow FY25

One Mobikwik Systems Ltd., the parent company of the fintech platform, MobiKwik, aims to expand its product portfolio distribution network to drive profitability and revenue growth, Executive Director, Chairperson and Chief Financial Officer Upasana Taku said on Monday.

The company went public in December last year, raising Rs 572 crore from investors in the primary market through its initial public offering.

Speaking to NDTV Profit, Taku highlighted the opportunities in India's digital transaction sector, stating that MobiKwik aims to capitalise on them through innovations like Pocket UPI and co-branded credit cards. Currently, the company serves 170 million users and 5 million merchants.

“MobiKwik has been competing with direct competitors that have raised Rs 20,000 crore and Rs 46,000 crore. That said, where we are today, I'm quite happy. Payments have been growing 3x, and we are already the largest wallet in India. We also plan to cross-sell other financial products like loans and credit cards,” she explained.

The top executive also discussed MobiKwik's shift towards diversified savings and insurance products. She emphasised ongoing investments in scaling the user and merchant base, as well as launching new products.

"We are adding about 5 million users every quarter, and the customer acquisition cost continues to hover in the 30s. This hasn't changed materially, though fluctuations do occur due to the dollar-rupee conversion, as we acquire users through platforms like Google and Meta. Merchant acquisition remains healthy, and with the IPO funds now in place, we’re investing in scaling our platform and launching innovative products. These investments will start showing benefits in the coming quarters, she added.

Commenting on the company’s performance in the current fiscal year, Taku explained that MobiKwik's loss in the first nine months of FY25 was due to reduced dispersals in unsecured lending. 

She attributed this dip to weaker market sentiment and lower dispersals from banks and NBFCs.

“The second half of FY24 saw weak sentiment in this space, and while we're not the balance sheet owner, lower dispersals from banks and NBFCs have impacted our revenue. However, we are seeing signs of improvement as market sentiment for unsecured lending begins to recover, she said.

For the FY25 outlook, she said that MobiKwik is focusing on scaling its payments business to cover fixed costs and achieve breakeven. The top executive added that the revenue from financial products is an additional benefit, not the primary driver of the company’s profitability.

Shares of One Mobikwik Systems Ltd. closed 2.4% higher at Rs 327.95 apiece on the NSE in comparison to the benchmark Nifty 50's rise of 1.3%.