Mobikwik Systems, the company behind the popular fintech app Mobikwik, reported a loss of Rs 3.3 crore in the September quarter of this financial year. This is a big change from a year ago when it made a profit of Rs 5.9 crore. The company’s earnings from business increased by 43% to Rs 289 crore, up from Rs 201 crore during the same time last year.
This news is special because it is Mobikwik’s first financial report since it went public on December 18, 2024. The company started trading at Rs 440 per share, which was 58% higher than its initial price of Rs 279. As of 12:30 PM on January 7, Mobikwik shares were trading at Rs 567.
However, Mobikwik’s expenses went up a lot in the September quarter. The cost of processing payments, which it has to pay to banks for handling transactions, nearly tripled to Rs 137 crore from Rs 42 crore last year. The money it spent on employee salaries also increased from Rs 25 crore to Rs 42 crore.
In a recent announcement, Mobikwik explained that it made an arrangement with one of its lending partners, allowing it to give up Rs 24.2 crore in expected income in exchange for waiving certain fees of Rs 42 crore for services in the last two quarters.
Mobikwik has about 167 million registered users and 4.4 million merchants using the platform. It processed a total of Rs 28,275 crore in payments. In the September quarter, it gave out Rs 1,630 crore in loans but has slowed down lending compared to Rs 2,200 crore in the prior quarter. The slowdown in loans affected its financial service revenue, which dropped to Rs 103 crore from Rs 136 crore last year.
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