MobiKwik's Profit Surge, Setting the Bar for Fintech Excellence in Q1 2023
Profitable Paradigm Shift, MobiKwik's Journey to Financial Triumph
9 August 2023
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Kunal Tyagi
MobiKwik reports inaugural consolidated profit in Q1 2023, led by COO Upasana Taku.
Adjusted EBITDA surges by 181% YoY to INR 13.6 crore, with a debut profit after tax of INR 3 crore.
Company's consistent growth strategy yields a 68% YoY revenue increase to INR 177 crore and a 108% rise in contribution margin to INR 73.9 crore.
In a groundbreaking development, MobiKwik, the esteemed fintech unicorn, has unveiled its inaugural consolidated profit in the first quarter ending on June 30. The momentous announcement was made by Upasana Taku, Co-Founder and COO of MobiKwik, who expressed the company's pride in being the first fintech firm to achieve this feat. With an adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of INR 13.6 crore, marking a remarkable 181% YoY increase, the company's upward trajectory is undeniable. This quarter also witnessed the company's initial consolidated profit after tax of INR 3 crore, setting the stage for sustained growth throughout the year.
MobiKwik's journey to profitability has been characterized by consistent growth without resorting to cash burn, reflecting in its expanding margins quarter after quarter. Bolstered by a 68% YoY surge in revenue to INR 177 crore and a 108% rise in contribution margin to INR 73.9 crore, the March 2023 quarter's INR 160 crore revenue and INR 3 crore adjusted EBITDA now appear as stepping stones on the path to its current success. Taku affirmed that the company's objectives for the previous year have been admirably met, laying a strong foundation for projected achievements, including over 80% top-line growth during the current fiscal year.
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The achievement of profitability by MobiKwik signifies a significant shift in the investment landscape, fostering positive sentiments among investors and inspiring other startups to aim for profitability. Taku anticipates a domino effect of startups turning profitable, catalyzing a more favorable investment environment. The firm's focus on expanding financial services, such as buy-now-pay-later and consumer loans, has contributed to its diversified revenue streams. With an impressive user base of over 14 crore and approximately 40 lakh merchant partners, MobiKwik is poised for further growth and innovation.
The success story of MobiKwik is emblematic of a larger trend in the tech startup ecosystem, where achieving profitability is increasingly becoming a central pursuit. As the company charts a course towards profitability in all quarters of the current fiscal year, its achievements reflect a newfound era where startups are striving for financial sustainability. With a dedicated vision to penetrate tier 3, 4 cities, and towns, MobiKwik is committed to capturing untapped growth potential in emerging markets. By extending its financial products to small merchants, the company seeks to leverage the digital transformation occurring in India's hinterlands.
Established in 2009 by Bipin Preet Singh and Upasana Taku, MobiKwik stands as a pioneer in the digital banking landscape, offering an array of financial products to both consumers and merchants. Its success rivals other industry giants like Paytm, Freecharge, PhonePe, Google Pay, and Simpl. MobiKwik's triumph in achieving profitability is not just a triumph for the company but a testament to the shifting priorities within the startup landscape, with a newfound emphasis on sustainable growth and financial viability. This landmark achievement is a harbinger of a new era for the Indian fintech ecosystem, characterized by a balance between innovation and profitability.
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