 "MobiKwik's Q3 FY25 loss widens to Rs 55.2 cr as expenses increase")
MobiKwik on Tuesday reported a consolidated loss of Rs 55.2 crore in the third quarter of Financial Year 2025 (Q3 FY25), slipping after a profit of Rs 5.27 crore the same time last year. Sequentially, the fintech company made a loss of Rs 3.59 crore in Q2 FY24.
Revenue from operations grew 17.7 per cent: From Rs 228.93 crore in Q3 FY24 to Rs 269.47 crore in Q3 FY25. However, such revenue declined sequentially by 7.3 percent: From Rs 290.64 crore in Q2 FY25.
Contribution margin remained muted in Q3FY25, declining from Rs 87.2 crore in Q3 FY24 to Rs 73 crore in Q3 FY25.
The company attributed the decline to lower financial services revenue and higher lending costs due to a transition to new default loss guarantee (DLG) contracts. It said a larger portion of such costs are incurred in the initial period of a contract.
The Gurgaon-based company’s expenses grew 43.8 per cent: From Rs 220.55 crore in Q3 FY24 to Rs 317.14 crore in Q3 FY25. Sequentially, expenses increased 10.55 per cent from Rs 286.86 crore in Q2FY25. A major part of the expenses in Q3 were for payment gateway costs. Such costs comprised more than 45 per cent of the total expenses at Rs 143.70 crore.
Revenue from financial services declined 53 per cent: From Rs 155 crore in Q3 FY24 to Rs 73 crore in Q3 FY25. MobiKwik said that new products would support revenue from financial services distribution.
ZIP, a small-ticket lending product, is being scaled down due to “lower appetite from lending partners for lower ticket sized credit products”. The company will focus on larger-tenure ZIP EMI products for “high-quality customers”.
MobiKwik’s revenue from payments more than doubled to Rs 196.5 crore in Q3 FY25, up from Rs 73.9 crore in Q3 FY24.
The company has a registered base of 172 million customers and 4.5 million merchants. It added 5 million new customers and 1,10,000 merchants in Q3
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%