IPO-bound fintech firm Mobikwik became profitable in the December 2021 quarter and expects to close the current financial year with almost two times growth in revenue, a top company official said on Tuesday.
Mobikwik co-founder and Chief Operating Officer Upasana Taku told PTI that the company recorded a profit of around Rs 7 crore in the third quarter of 2021-22, after losing money in the first and second quarters.
"In the last quarter, the company achieved profitability for the first time. We expect to be profitable in the fourth quarter as well. We expect our full financial year (FY) of 2022-23 to be profitable. This really validates our theory and the message that we have been giving that it is possible in the Indian fintech space to build a fast pace growth model while at the same time make money," Taku said.
Sharing details of the nine-month period ended December 31, 2022, Taku said the company has achieved revenue of around Rs 400 crore, which is 86 per cent growth on a year-on-year basis.
"Given this... we expect that we will be closing the year at Rs 550-600 crore which is two times our last financial year," Taku said.
She said in order to achieve Rs 300 crore of revenue in FY'21, the company had a cash burn of Rs 98 crore, which is negative 32 per cent in terms of EBITDA as a percentage of revenue.
"To reach this Rs 400 crore we have overall losses of Rs 78 crore for the nine-month period, which is negative 19 per cent. This is a massive improvement from negative 32 per cent to 19 per cent for the nine-month period," Taku said.
She added that there are traditional financial institutions that are clocking huge profits but their growth rate is in the range of 20 per cent, and then there are startups that are showing 100-150 per cent growth but are hugely loss-making.
"I think this is the fine balance that Mobikwik as a late-stage, mature company is trying to straddle where we are able to showcase 100 per cent revenue growth and at the same time reaching breaking even," Taku said.