Money & Banking

Digital payments to recover by year end: MobiKwik CEO

Surabhi Mumbai | Updated on September 16, 2020 Published on September 16, 2020

Bipin Preet Singh says IPO is proof of pudding of Atmanirbhar Bharat

Homegrown fintech player MobiKwik, which is looking to list by 2022, will continue to focus on its digital credit card business and work on profitability.

“We are the only fintech company in the country which has demonstrated profitability. We have been steadily cutting down our losses,” said Bipin Preet Singh, co-founder and CEO, MobiKwik.

“We are confident that in 18 to 24 months, we will be ready for an initial public offering,” he told BusinessLine.

He noted that MobiKwik is the only fully-owned Indian payment company and the IPO will be “proof of the pudding” for Atmanirbhar Bharat.

MobiKwik had, on September 15, kickstarted its IPO 2022 campaign. According to its Annual Report 2019-20, it had net revenue of ₹379 crore, cash loss of ₹8.5 crore and had reported profitability in some months in 2019-20.

Singh said the company is working on turning profitable in the current fiscal.

Also read: Mobikwik hopes to turn profitable in FY21, expects recovery in payments by end August

While transactions through the Unified Payments Interface (UPI) have shown an upswing in recent months, Singh said he expects a full recovery in the digital payments sector by the year end.

Also read: MobiKwik launches personal UPI payment link mpay.me

“I expect that it will take till December for digital payments to recover to pre-Covid levels. The festival season will be critical but with cases rising it may not be so easy,” he said.

The advantage for MobiKwik during the current economic crisis has been that it was not making losses lately unlike many other players in the sector.

“We have not been losing money in the last six months, although business has been down. Our focus has been to invest in our products, work on improving the customer experience, and launch new products,” he said.

The company has also been working on improving its core business of digital credit cards. “The digital credit card will bridge the gap between debit and credit cards,” Singh said.

Since 2018, it has disbursed over 19 lakh loans through its digital credit line.

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Published on September 16, 2020
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