MobiKwik posted the first-ever profit in December 2021 before the IPO

IPO-bound fintech firm MobiKwik turned profitable in the December 2021 quarter and expects to close the current fiscal year with revenue nearly doubling, a top company official said.

Upasi Taku, co-founder and chief operating officer of MobiKwik, told PTI that the company has recorded a profit of around Rs. 7 crore in the third quarter of 2021-22, after losing money in the first and second quarters.

“Last quarter, the company made a profit for the first time. We expect the fourth quarter to be profitable as well. We expect our full fiscal year 2022-23 to be profitable.”

“It really validates our theory and the message we are giving that it is possible to create a model of rapid growth while making money in the Indian fintech space at the same time,” Taku said.

Sharing details of the nine-month period ending December 31, 2021, Taku said the company has earned almost Rs. 400 crore, an increase of 86 per cent on a year-on-year basis.

“In this regard, we expect to end the year at Rs 550-600 crore, which is double our last financial year,” Taku said.

He said to earn Rs. The company has lost Rs 300 crore in cash in FY’21. 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 incurred a total loss of Rs 78 crore for nine months, which is a negative 19 per cent. This is a huge improvement from a negative 32 per cent to 19 per cent for a period of nine months,” Taku said.

He added that there are some traditional financial institutions which are making huge profits but their growth rate is within 20 percent and then there are startups which are showing 100-150 percent growth but making huge losses.

“I think that’s the fine balance that MobiKwik is trying to make as a late-stage, mature company where we’ve been able to grow revenue 100 percent and reach break-even at the same time.”

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