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Half Yearly Report FY20

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Market Dynamics

few years, India has witnessed a tremendous growth in the Digital payments sector, driven by rapid internet & smartphone penetration and several initiatives taken by the government to promote digital payments. Currently, India ranks second in the world with over 1 billion mobile subscriptions & 400 million+ smartphones which are projected to rise to over 500 million by 2020. Also, with increase in 3G and 4G penetration, the number of internet users is predicted to double to 650 million by 2020. After growing five-fold in five years, annual per capita digital transactions have reached to 22. The Indian government has set an aggressive target to increase this to 220 by March 2021 – that’s a lot of transactions in a country of 1.3 billion people!

Credit Led Payments Opportunity

The total monthly spend of all the  52 million credit card users is almost the same as the total monthly spend of 852 million debit card users In India ($8.5B a month in each case). Our mission is simple – to provide accessible and affordable credit to the next 100 million users who do not have an access to a credit card.


MobiKwik is unique in its strategy of delivering digital credit in users’ e-wallets. We’ve found that wallets are the ideal virtual accounts to deliver digital credit. Mobile wallet KYC is now on-par with banks, while KYC is not permitted on the UPI customer base as UPI PSPs are not “regulated entities”. Wallets allow lenders and payment processors to control end-use of the loan (as against UPI which permits transfers to any bank account) and gain insights into spending patterns and habits. As credit is delivered on owned, proprietary wallet rails, there is much better control of the tech stack rather than relying on third-party rails such as UPI. Our strategy has paid off – over 10% of the funds in user wallets is now funded by MobiKwik Credit and has dramatically altered our profitability.

Business Performance

MobiKwik: First payments company to be cash EBITDA positive

MobiKwik has increased its revenues at 100% each year for the last two years while maintaining a strong focus on profitability. We’re currently trending at an annualized gross revenues of INR 4,250 mn. Our revenue for the Sep-19 quarter is 2.6x a year ago. In addition to it, we’re the first payments company of such a scale in India to be EBITDA cash positive since Aug-2019.

Our business has been consistently Contribution Margin(1) positive since Oct-18 with ~35% contribution margin in Sep’19 – this is a first for any large consumer tech business in India and even more so for one that operates in a highly competitive market such as payments.

Platform Growth

Digital payments in India continue to grow every single month driven by strong tailwinds. The economy itself is growing and consumer payments generally grow in line with the economy. But there is also a strong preference shift to digital payments on account of convenience, cost and new services and transactions (like food & ticketing) go digital. Finally, there are the regulatory tailwinds from demonetization, which drove consumers toward digital payments, as well as the implementation of GST, which has driven merchants to embrace digital payments.

MobiKwik is proud to be the payment platform of choice for large enterprises and start-ups, including Uber, Zomato, IRCTC, Grofers, Milkbasket, Dream11, amongst others.

In first half of FY2020, over 120M transactions took place on our platform – Up 1.6x YoY

Digital Credit

We’ve built India’s first completely digital credit platform that scores users in less than 5 seconds, allows them to complete KYC and EMI repayment setup in less than 2 minutes, and instantly disburses funds to their wallet for shopping within the MobiKwik network.

We work with India’s leading Financial Institutions to create genuine loan products that customers need in small packet sizes. We are able to keep operating costs low by delivering the loan completely digitally and without any human intervention whatsoever. Because our fully digital self-serve model is agnostic to the ticket size, we are equally happy giving a INR 2,000 loan as we are giving a INR 2,00,000 loan.

We started our digital lending journey over a year ago and disbursed over 100K+ fully digital loans in Sep 2019 out of the 1 million applications we received in the same month. We’re well on track to disburse over INR 1,500 crores across 1.2 million loans in FY 2020. We offer more digital loans online than any other lender, at lower operating costs and across 4,000 unique Pin codes in India.

Payment Gateway

MobiKwik’s Payment Gateway was launched in 2011 with a vision to simplify the online payments in India and support new businesses with customized digital payment requirements. It currently powers payments for more than 4,000 websites and apps spread across a wide range of industries including grocery, travel, utilities, telecom, health, education, auto, finance and e-commerce.

Platform  Affinity

MobiKwik works closely with merchant partners (key accounts) to co-create offers, which gives MobiKwik the desired visibility for optimal marketing spend. The ability to do this consistently month-after-month helps grow affinity towards MobiKwik.

User Retention

With a plethora of new products (including financial services) to cross-sell to existing users and a much-improved loyalty program (Supercash), user retention cohorts are consistently showing an upward trend (both during a month and across subsequent months).

Net Promoter Score

With increased focus on addressing top customer complaints by means of productization, MobiKwik has been able to increase customer delight across all product verticals and consequently, we have the highest NPS score amongst all wallet players.


Leaders are crucial in any setup but for us, they have been paramount. We have a set of people we trust, for their intelligence, their ownership, their commitment, and their understanding of what we want to achieve. They are the corner pieces in the puzzle we’re trying to solve, and we have entrusted them with the responsibility of building the teams that will make us stronger.

We take pride in being an equal opportunity employer. The Indian work environment is changing, and we take responsibility to be instrumental in that change. All of us, who are a part of the Indian workforce, have a responsibility towards creating an environment where women feel confident, that they deserve to succeed. We have a responsibility towards breaking moulds that have been created by hundreds of years of patriarchy and we’re achieving this, one strong woman at a time. While there is a lot of ground to cover here, currently women constitutes 50% of our Engineering Managers & 26% of our overall workforce.


Players in the financial industry are ideally poised to respond to Noblesse oblige. At MobiKwik we recognise and embrace this responsibility, to build affordable and accessible financial services for the next billion people.

FY20 is already half done and we are on the path to build the most impactful financial services provider that promises to bring a genuine change in the lives of Indians. A key part of this financial service platform is our credit offering, that will also become one of the biggest trends of 2020! Lending is a part of the ever changing ecosystem. A loan enables an individual to help himself and when paid off,  allows players like us to further invest and help others to make their dreams a reality.

In September 2019, we achieved a stretch goal of having dispersed over 100K+ digital loans out of the 1 million applications we received from people who have either negligible access to financial services, or no credit history, or both, thereby, helping them fuel their aspirations. Till date, MobiKwik has only reached out to 2% of its customers and is on track to reach the rest 98%.

Our focus and mission are buoyed by all our stakeholders – our customers, employees, investors, merchants, and naysayers. With our burning passion to make MobiKwik the most profitable company in the sector, I’m pleased to confirm that we are on track for a superlative performance by March 2020 and going IPO by 2022.

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