MobiKwik’s Q3 FY25 Results: Revenue Soars, Losses Widen
MobiKwik, the popular Gurugram-based fintech company, recently released its financial results for the third quarter of FY25 (Q3 FY25), showing a 17.5% increase in revenue year-on-year, but also revealing a widening loss. The company reported a revenue of Rs 269 crore for Q3, though it also posted a net loss of Rs 55 crore, a significant contrast to the Rs 5 crore profit it reported during the same quarter last year.
While the company saw growth in several areas, including user adoption and its payment gross merchandise value (GMV), the rising expenses in areas like gateway fees and lending costs seem to have weighed down its overall profitability. Let’s break down the key highlights of MobiKwik’s performance in Q3 FY25.
Revenue Growth, But Still a Loss
Year-On-Year Revenue Boost
MobiKwik’s revenue for Q3 FY25 showed strong year-on-year growth. The company posted Rs 269 crore in revenue, up by 17.5% compared to Rs 229 crore during the same quarter last year. However, when compared to the previous quarter (Q2 FY25), there was a 7.6% decline in revenue, as Q2 FY25 had seen a higher revenue of Rs 291 crore.
This quarter, MobiKwik attributed its earnings to several sources, including commissions on recharges, loan servicing, and its technology platform. These earnings have helped the company to sustain some growth despite its increased operational costs.
Cost Escalation Puts Pressure on Profits
While revenue showed growth, the company’s total expenses surged by 44.1% year-on-year, rising to Rs 317 crore. The largest contributor to this increase was payment gateway expenses, which alone accounted for nearly Rs 144 crore—almost half of the company’s total expenses. Additionally, expenses on human resources and lending fees also contributed to the rising costs.
As a result, MobiKwik ended up with a net loss of Rs 55 crore for the quarter, a sharp contrast to the Rs 5 crore profit it had reported in Q3 FY24. The combination of higher costs and a slight revenue dip from the previous quarter led to these widening losses.
Growth in Payments and User Base
Despite the loss, MobiKwik continued to experience substantial growth in its core payments business. Here are some of the key figures that paint a positive picture for the company:
Payments GMV Soars
The company’s gross merchandise value (GMV), a key indicator of its payment processing volume, grew by over 200% year-on-year in Q3 FY25, reaching an impressive Rs 29,400 crore. This surge reflects an increasing number of merchant transactions and a higher adoption rate among end-users.
User Growth and Merchant Expansion
In terms of user base, MobiKwik now serves 172 million users, adding about 5 million new customers during the quarter. This marks a significant growth in its user adoption, driven by its payments platform and other fintech offerings.
The company also added 110,000 new merchants to its platform during Q3, bringing its total merchant count to around 4.5 million. This indicates healthy expansion in the merchant network, which is crucial for long-term revenue growth.
Nine-Month Performance and Outlook for FY25
Looking beyond Q3, MobiKwik’s nine-month performance for FY25 also reveals growth, despite some setbacks. Here are a few things to note:
Nine-Month Revenue Growth
For the first nine months of FY25, MobiKwik reported a total income of Rs 914 crore, driven primarily by a 48% year-on-year increase in its payments business. The company has continued to scale its payments operations, with the GMV for the first nine months of FY25 standing at Rs 82,800 crore, a remarkable increase of 248% compared to the same period last year.
Focus on Payments & Credit Products
Although payments continue to drive the majority of MobiKwik’s revenue, the company has been more cautious with its credit products. This caution in lending has had an impact on the revenue contribution from this area, but MobiKwik remains confident in the long-term potential of its financial product distribution.
The company has been expanding its partnership network, notably with Piramal Finance, to broaden its financial offerings, including loans and insurance products.
MobiKwik’s IPO Journey and Future Strategy
MobiKwik, which went public in December 2024, made a strong debut with its stock listing at a 59% premium over the issue price. At the time of writing, MobiKwik’s stock is trading around Rs 406, giving it a market capitalization of approximately Rs 3,160 crore.
Upasana Taku, MobiKwik’s Co-founder and CFO, highlighted the company’s strategy moving forward. She emphasized the importance of continued investment in product innovation and payments growth. According to Taku, the successful IPO has provided the company with the necessary capital to drive profitable expansion in the upcoming quarters.
The company’s leadership remains confident that it is on the right track to scale sustainably, with a focus on innovative solutions to meet the growing demand for digital payments and financial services across India.
What Lies Ahead for MobiKwik?
Looking ahead, MobiKwik’s path to profitability will largely depend on its ability to manage rising expenses while continuing to grow its payments business and user base. While the company is showing strong growth in GMV, expanding its merchant base, and increasing its user adoption, it will need to control costs and improve efficiency to become profitable in the near future.
The company’s cautious approach to credit product disbursements could serve as a long-term advantage, allowing it to avoid the risks associated with a potential bad debt crisis that many fintech companies face. However, increasing competition in the digital payments space and its ongoing investment in new technologies may affect its financial performance in the short term.
Overall, MobiKwik is well-positioned to benefit from the rapid growth of India’s fintech ecosystem, but it will need to balance expansion with profitability to truly unlock its potential in the market.
Conclusion: A Mixed Quarter, but a Bright Future Ahead
MobiKwik’s Q3 FY25 results reflect a mixed performance: strong revenue growth but widening losses. However, the company’s expanding user base, surge in payments GMV, and successful IPO debut suggest that its long-term growth prospects remain promising. While expenses have escalated, and short-term profitability is under pressure, MobiKwik continues to make significant strides in expanding its payment infrastructure, merchant network, and financial offerings.
Investors and stakeholders will be closely monitoring MobiKwik’s ability to control costs while scaling its operations in the coming quarters. If it can continue to innovate and effectively manage its expansion, the company could be on track for a profitable future.
Stay tuned for more updates as MobiKwik navigates its way through the challenges and opportunities of the fast-growing fintech market.
