For comprehensive digital payments company Mobikwik, FY18 comprised of partnering with Bajaj Finserv, IndusInd Bank, Samsung Pay, and IRCTC to enhance and expand its services into fintech lending, co-branded wallets, one-tap payment, and rail tickets respectively.
By the end of the fiscal year, it also launched the B2B product Magic. All these activities in the company took the support of the massive Rs 225 crore funding by Bajaj Finance.
The impact of these developments was such that the company’s consolidated revenue increased by 93.1 per cent to Rs 85.65 crore, from Rs 44.35 crore in FY17. But the cost was still larger than the revenue and the consolidated losses hiked by 52.8 per cent, from Rs 132.8 crore to Rs 202.98.
On a standalone basis as well the company saw its losses spiking by 55 per cent to Rs 203.25 crore, even more than consolidated losses, and revenue showing an 85 per cent increased figure at 69.28 crore.
This increase in revenue is good news when considered the fact that FY17 had seen a 1.8 per cent decline in the standalone figure. The losses, on the other hand, saw a greater increase as compared to a 20 per cent increase in FY17.
Nevertheless, the company has managed to slightly improve its relation between topline and baseline profitability metrics by reducing the gap between revenue and losses a little.
Since FY19 is near its end, it would be interesting to see how this year’s lack of further significant funding and launching of new services one after the other – UPI, instant credits, Boost, wealth management, and digital insurance, is going to affect the financial statements. Especially considering Bipin Preet Singh’s recent claimed that the company is on its way to doubling the revenue and halving the losses via a LinkedIn post.
The information is sourced from CNBC.
