Comments
IPO-bound One MobiKwik Systems (MobiKwik) has achieved cash breakeven in the quarter ended December 2021, Upasana Taku, Co-founder and COO, has said.
This is the first time in the company’s history of over twelve years that such a feat has been achieved, Taku told BusinessLine here. She expressed confidence that cash breakeven will be accomplished in the ongoing fourth quarter of this fiscal as well.
Taku noted that MobiKwik had recorded a EBIDTA of about ₹7 crore in the third quarter.
Meanwhile, for the nine months ended December 31, 2021, MobiKwik’s total income grew 86 per cent year-on-year to ₹396.6 crore from ₹212.70 crore. For all of FY21, the company recorded a total income of ₹302.3 crore.
“At current growth rate, we might end up at ₹550-₹600 crore total income this fiscal. At the least, we should have total income of atleast ₹150 crore in the fourth quarter,” said Taku.
The fintech recorded a negative adjusted EBIDTA of ₹78.4 crore in the first nine months of this fiscal as compared to negative adjusted EBIDTA of ₹57.9 crore in the same period last fiscal.
‘Making money’
Taku said that MobiKwik has, over the last 2-3 years, demonstrated that it is possible to be profitable while going after growth.
“Our operating performance numbers for the first nine months of this fiscal are validating our strategy where we deliver 100 per cent growth while generating money and not burning cash
Upasana Taku, Co-founder and COO, MobiKwik
All the business segments — Consumer Business, Buy Now Pay Later and Payment Gateways — were contribution margin profitable in the third quarter of this fiscal. Contribution margin is computed after deducting all direct costs associated with the business from the revenues.
“Most fintechs in India are bleeding money even at this level, forget about the EBIDTA level. We are saying that MobiKwik is making money now at the EBIDTA level and PBT level,” she said.
Meanwhile, Taku said that the company’s ₹1,900 crore IPO— for which SEBI approval had been obtained in October last year — has not been shelved but would go ahead at the right market conditions since current conditions are not that conducive given war-induced volatility in global equity markets, she added.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.