MobiKwik to be fully profitable by FY24, 100% committed on the IPO front, says co-founder Upasana Taku

Fintech platform MobiKwik is expected to be fully profitable by FY24 with its revenue crossing the mark of Rs 1,200 crore. In the current financial year (FY23), the company expects Rs 800 crore in revenue against Rs 540 crore of revenue last year. With the rise in revenue, losses are also expected to be reduced by half from Rs 72 crore to Rs 35-40 crore in FY23. 

“This year while we are expecting to do a strong growth in terms of revenue from Rs 540 crore (FY 22) to Rs 800 crore (FY23), our losses will also come down. So, on Rs 540 crore our losses were Rs 72 crore and this year we expect it to be half of that so, may be Rs35 - 40 crores of loss for Rs 800 crore revenue. We are expecting next year as in FY 24 to be the first fully profitable year because by that time the scale of the revenue will be above Rs 1200 crore and on that number, we will definitely be able to be profitable,” says Upasana Taku, co-founder, MobiKwik.

In the FY22, for the first time, the company turned profitable during December and March quarters, "While we have done few profitable quarters, there is nobody in my competitive ecosystem who has turned profitable in even one quarter in their lifetime. So, we are definitely far ahead in the story of building a sustainable and profitable business...in fact, they're so far away that I don't think that they will ever become profitable in the next three years,” adds Taku.

MobiKwik’s business is divided into two segments: comprising payments and digital financial services business. MobiKwik was founded in 2009 by the husband-wife team of Bipin Preet Singh and Upasana Taku. The Gurugram-based firm has approval from India's market regulator SEBI for its Rs 1,900 crore IPO, which comprises of a fresh issue of Rs 1500 crore and an Offer-for-Sale (OFS) of Rs 400 crore.

Taku says that she is fully committed on the IPO front and will bring it when markets turn stable. “This year, no consumer internet start-ups have tried to do an IPO. Last year, we did all the work, we got the SEBI approvals and we wanted to go for an IPO. But another company in our sector went for an IPO just before us. And I think they had a fairly disastrous event. So, due to which, we could not have gone right away for an IPO. We had to wait a few months for the market to stabilise. And, by the time those few months passed, Ukraine war happened. Global markets dipped due to the macro conditions. We are waiting for the right time. But from a goal and vision perspective, we are 100 per cent committed on the IPO track. So, whenever the markets are stable, we will be at the front of the queue,” says Taku.
 

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