Digital payments company MobiKwik on Wednesday disclosed its FY20 annual results with a 133 per cent growth in net revenue to Rs 379 crore from Rs 162 crore in FY19. The company also said that its net income before with interest, taxes, depreciation, and amortization (EBITDA) loss reduced 63 per cent year-over-year while cash EBITDA loss was reduced 91 per cent to Rs 8.5 crore from Rs 98 crore in the last financial year.
MobiKwik’s contribution margin went up 233 per cent year-over-year to Rs 199 crores in FY20. The company had become a contribution margin positive in October 2018 and remained so for each month in FY20. “18 months of positive margin is a first for any consumer tech business; even more so for one that operates in a hyper-competitive market such as payments in India,” said MobiKwik co-founder Upasana Taku.
The wallet or consumer payments arm, which is the primary business for MobiKwik, registered growth of 159 per cent in net revenue from Rs 89 crore in FY19 to Rs 230 crore in FY20. On the other hand, its user incentives grew only 30 per cent “indicating the love and loyalty we share with our 120 million users,” Taku said. The company managed to do that by “acquiring & retaining users at an overall low cost, adding a myriad of new payment use cases, generating higher spends per user, and striking key partnerships.”
MobiKwik had tied-up with Google in February this year for its ‘mobile recharge search’ launched for India for users to have an easy recharge experience within Google Search. The company had also created ‘biller stack’ for e-commerce companies to add ‘bill payments’ category on their mobile apps. This was first launched on Flipkart.
The company’s payment gateway business (through its subsidiary Zaakpay) registered revenue growth to Rs 190 crores in FY20 from Rs 101 crores in FY19 on a standalone basis. MobiKwik’s digital credit card and mutual funds business also saw a significant growth of 216 per cent during the financial year. The revenue for the segment went up from Rs 29 crore in FY19 to Rs 91 crore in FY20. The growth came on the back of “our unique approach of stitching a credit Line to a user’s mobile wallet creating a virtuous cycle where payments drive credit (user’s risk score is based on her payment data), which in turn drives spends,” Taku added.