MobiKwik turns profitable in Q3 FY22

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Key Highlights for 9 Months FY22 (April to December 2021)

  • Revenue grew 86% Y-o-Y
  • Consolidated GMV grew 152% Y-o-Y
  • Buy Now Pay Later (BNPL) GMV grew ~840% Y-o-Y

MobiKwik, one of the largest mobile wallets and the largest BNPL Fintech in India, has released its 9M FY22 results, reflecting robust top line growth across all business segments i.e. Consumer Payments, BNPL and Payment Gateway.

The company’s revenue grew 86% Y-o-Y from 2126 million INR to 3965 million INR for the 9 months period ending December 2021. The consolidated GMV went up by 152% Y-o-Y for the 9 months period ending December 2021 from 102.4 billion INR to 257.8 billion INR. The company has also turned profitable for the first time since inception in the quarter ending December 2021 (Q3 FY22).

The company has witnessed strong GMV growth across all its business segments. The established businesses of MobiKwik namely Consumer Payments and Payment Gateway grew by 144% and 212% respectively in terms of Y-o-Y GMV.  The fastest growing business segment of the company – BNPL recorded a spectacular 840% Y-o-Y growth in GMV.

Buy Now Pay Later – The big opportunity

MobiKwik is the largest BNPL fintech in terms of pre-approved user base at 25.3 million and an active user base of 2.4 million. Even as the BNPL GMV grew ~840%, the BNPL business stayed contribution margin positive highlighting the company’s strong risk management prowess. 

As the only BNPL product sitting on the foundations of Consumer Payments, the flagship product MobiKwik Zip continued to see strong user uptake and engagement. The company witnessed exponential growth with 32X increase in active Zip users and 157x growth in Zip transaction volume. The repeat rate for MobiKwik Zip users was at 81 % with average monthly spends per user at INR 3,245 as of December 2021.

Strong growth is not at the cost of cash burn

The company has consistently delivered positive contribution margin in all business segments as well on consolidated basis since FY 2020 (Contribution Margin is defined as Revenue – Direct Costs). The strategy of focusing on sustainable growth has helped the company invest aggressively at the right places (i.e., on people and technology) without incurring high cash burn and without sacrificing growth. The company has spent cumulatively INR 3.7bn (US $50m) since FY19 to grow the revenue ~2.5x in the same time period.

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