Mobikwik post Rs 5 crore profit in Q2

Fintech firm MobiKwik has recorded a consolidated profit of Rs 5 crore in the September 2023 quarter and expects to maintain the momentum in the current fiscal, a top company official has said.

The company will evaluate its position based on the ongoing performance and market condition in the June 2024 quarter for the firm's public listing.

Its revenue grew 52 per cent to Rs 208 crore during the reported quarter from Rs 136.9 crore in the September 2022 quarter.

"We have seen good growth in our digital credit and payment business. The digital credit business has grown faster. This is the third straight profitable quarter for us and the second at the PAT (profit after tax) level. With this, we see our growth momentum is in the right direction. We are hopeful of maintaining it for the rest of the year," Singh said.

The company posted its first-ever profit after tax of Rs 3 crore in the June 2024 quarter and a revenue of Rs 177 crore.

"There has been a 58 per cent increase in revenues in the first six months of the current fiscal compared to the first half of 2022-23. MobiKwik has scaled its revenues to Rs 385 crore (unaudited) with a PAT of Rs 8 crore (unaudited) in the first half of the current financial year," Singh said.

He said that the company's focus is to grow with profitability without burning cash.

"We continue to develop new products that ensure greater financial inclusion, creating value for users, small businesses and merchants across new Bharat. We are investing in making our product as default for digital banking," Singh said.

He said that people in metros and tier 1 cities have access to banking and all sorts of banking products but people away from these cities are hardly aware of the potential of banking products.

"It is a very big opportunity for us. To cater to the requirements of this segment, we have launched MobiKwik Lens, a data-driven tool on its platform, aimed at empowering the populace of middle India with data on their financial health. They are unaware of the return they can generate by making investments. We will focus on this market in the coming months," Singh said.