MobiKwik, a provider of digital payment solutions, increased its revenue to Rs 525 crore in FY22. While the pandemic reduced its scale by 20 per cent in FY21, the Gurugram-based company's revenue increased by 82.6 per cent during the fiscal year ending March 2022. (FY22).
According to the company's annual financial statement with the Registrar of Companies (ROC), MobiKwik's operating income jumped to Rs 526 crore in FY22 as compared to Rs 288 crore in FY21. Furthermore, the company generate revenue primarily from consumer payments, payment gateway services and Buy Now Pay Later (BNPL) financial products. However the company has not filled the revenue breakup in the filings.
MobiKwik provides financial guarantees for bank loans obtained by users through its BNPL platform, as well as books associated costs. In FY22, such expenses increased by 57 per cent to Rs 91 crore. It operates the BNPL product Zip, which claims to have over 25 million pre-approved BNPL users and 2.8 million active users.
Despite an 82 per cent increase in scale, MobiKwik has managed to keep losses under control, which increased 15.3 per cent to Rs 128 crore in FY22 from Rs 111 crore in FY21. On a per-unit basis, the company spent Rs 1.26 to generate one unit of operating revenue. Other income for the company comes primarily from interest on non-current investments, which increased by 22 per cent to Rs 16.6 crore in FY22.
Payment gateway expenditure emerged as Mobikwik's largest cost centre, accounting for 34 per cent of total expenses. In FY22, this cost increased by 51 per cent to Rs 228 crore. Other important costs included advertisement/promotion and employee benefit expenses, which accounted for 17 per cent and 16 per cent of total expenses, respectively. In FY22, these costs increased by 30 per cent and 102 per cent, respectively, to Rs 113 crore and Rs 107 crore.
The startup also spent Rs 19 crore and Rs 18 crore on legal professional fees and lending operational expenses, respectively, increasing the total cost by 61.4 percent to Rs 665 crore in FY22.
While the company expects to return to profitability by FY24, it faces regulatory challenges. The Reserve Bank of India (RBI) rejected the company's payment aggregator application because it did not meet the net-worth criteria. Following that, it is said to have filed a new application.