The mobile payments giant achieves profitability with Rs 14 crore net profit in FY24, signaling strong growth potential for regional fintech players in South India.
In a significant development that could inspire Tamil Nadu’s growing fintech sector, mobile payments startup MobiKwik has reported a remarkable 62% surge in revenue, reaching Rs 875 crore in FY24. The Gurugram-based company’s successful turnaround from a Rs 84 crore loss in FY23 to a Rs 14 crore profit in FY24 marks a crucial milestone in India’s digital payments landscape.
The company’s strong financial performance comes as it prepares for a Rs 700 crore initial public offering (IPO), having recently re-submitted its Draft Red Herring Prospectus (DRHP) to SEBI. This development holds particular significance for Tamil Nadu’s burgeoning fintech ecosystem, where several startups are closely watching MobiKwik’s journey as a potential blueprint for growth and public market success.
According to regulatory filings, MobiKwik’s revenue growth was primarily driven by its diverse service offerings, including commission on recharge sales, money transfer fees, and income from loan servicing through lending partners. The company’s total income rose to Rs 890 crore in FY24, compared to Rs 561 crore in the previous year, while managing to keep expenses in check at Rs 876 crore.
“MobiKwik’s return to profitability demonstrates the maturing of India’s fintech sector,” says Dr. Rajesh Kumar, Director of the Chennai Fintech Forum. “For Tamil Nadu’s fintech startups, this success story highlights the importance of building sustainable revenue models while maintaining strong unit economics.”
The company’s growth trajectory has been supported by strategic leadership appointments, including Mohit Narain as COO of Consumer Payments and Harvinder Singh Chadha as Vice President of Zaakpay, MobiKwik’s payment gateway arm. These appointments reflect the company’s focus on strengthening its core business segments and expanding merchant partnerships.
MobiKwik’s success has particular relevance for Chennai’s fintech corridor, which has emerged as a significant hub for financial technology innovation in South India. The company’s ability to secure RBI approval for its payment aggregator business sets a precedent for local startups navigating regulatory requirements in the financial services sector.
“The transformation of MobiKwik from a simple mobile wallet to a comprehensive financial services platform offers valuable lessons for Tamil Nadu’s startup ecosystem,” notes Priya Venkatesh, Managing Partner at Chennai Angels. “Their focus on diversified revenue streams and regulatory compliance while maintaining growth is something regional startups should emulate.”With approximately 146.94 million registered users as of September 2023, MobiKwik’s scale demonstrates the vast market potential for digital payment solutions.
The company’s successful debt financing of Rs 50 crore through non-convertible debentures from BlackSoil Capital also highlights alternative funding routes available to scaling startups.
For Tamil Nadu’s fintech sector, MobiKwik’s journey from a startup to a profitable, IPO-bound company represents a case study in sustainable growth. The state’s robust technical talent pool and supportive startup policies position it well to nurture similar success stories in the financial technology space.
As MobiKwik moves forward with its IPO plans, its reduced offering size of Rs 700 crore, compared to the initially planned Rs 1,900 crore in 2021, reflects a more measured approach to public markets.
This pragmatic strategy could provide valuable insights for Tamil Nadu’s startups considering public listings in the future.
