InvestorQ : Is it true that Mobikwik is likely to turn profitable in FY21?
sarah Leo made post

Is it true that Mobikwik is likely to turn profitable in FY21?

vidhya Laxmi answered.
1 year ago

Mobikwik is one of the major digital payments and financial services start-ups in India. This company saw revenues grow 133% to Rs.379 crore in fiscal year 2019-20. Even the EBITDA losses were lower by 60% at Rs.45 crore. The management has expressed the possibility that the company could turn fully profitable on an operating basis in FY21.

Mobikwik offerings encompass consumer payments, financial services and payment gateway services. The spike in revenues has reduced the cash burn ratio substantially for Mobikwik. Mobikwik has also focused on rationalising costs. They are looking at the financial services garnering same revenues as consumer payments business by FY21.

In FY20, the consumer payments vertical, saw its revenues double to Rs.230 crore while the financial services vertical saw revenues tripling to Rs.91 crore. Digital wallet is a big part of its consumer payments business. Mobikwik also offers a small credit line to its digital customer and that remains one of the major attractions of the business model.