BENGALURU: Digital payments and financial services startup MobiKwik said its revenue grew by 133% year-on-year to ₹379 crore in 2019-20. It also reduced its Ebitda loss by 60% to ₹45 crore in FY20.
The startup now aims to become profitable by the end of FY21, said a top executive.
MobiKwik has three business lines -- consumer payments, financial services (which houses its digital lending, insurance and mutual fund offerings) and payment gateway.
“We have grown our revenue 100% year on year and reduced our (cash) burn significantly. This March was our best month ever, where we clocked revenues of ₹38 crore and our burn was merely ₹8 lakh," said Upasana Taku, co-founder, MobiKwik.
“We have done everything to rationalise our costs, and believe that our fintech vertical can now be scaled much faster. In the next two fiscals, financial services will be garnering the same revenues as our consumer payments business," added Taku.
For the Gurugram-based startup, revenue for its consumer payments (including wallet business) and financial services verticals doubled in the last fiscal.
In the consumer payments vertical, MobiKwik saw its net revenue double to ₹230 crore in FY20 compared to ₹89 crore in FY19. While, its financial services vertical also witnessed 3x growth, with revenues climbing to ₹91 crore in FY20.
Digital wallet continues to be a big part of its consumer payments business, as it looks to keep the customer in its ecosystem with a digital lending credit line.
“Consumers make payments through our wallet and are also offered a credit line, hence they make more payments using our wallet and it becomes a cycle. Unlike competition we do not try to focus on UPI, as we see no monetisation there," Taku said.
MobiKwik’s payment gateway business, through its subsidiary Zaakpay, also registered net revenues of ₹190 crore in FY20. This includes the revenue generated by MobiKwik platform, which is also a clientele of Zaakpay, as well as external clients including Uber, IRCTC, among others.
Zaakpay’s revenue through MobiKwik is not included in the total revenue of the digital payment startup.
With covid-19 impacting digital payment firms, MobiKwik saw a 30% dip in transaction volumes on its platform and expects to climb up to 85% of pre-covid transactions by July-end.
“We are increasingly working on bundling our products (payments, credit and financial services), and make stronger revenues. For credit we will focus on health, education and daily life expenses which is critical to the user," said Taku.