MobiKwik delivers a second straight PAT positive quarter; plans to bet big on AI

NEW DELHI: IPO-bound MobiKwik has delivered a second straight PAT (profit after tax) positive quarter. The fintech firm posted net profits of Rs 5 crore in the July-September quarter. Revenues increased by 52% year-on-year to Rs 208 crore in Q2FY24, the company said. “For us, the journey of profitability is just starting. We expect that in the long-term, in the next few quarters, our profit margins will keep increasing significantly as a percentage of our revenue. And we will keep growing the business in this way, the focus being on digital banking,” co-founder and CEO Bipin Preet Singh told TOI. MobiKwik had reported profits of Rs 3 crore in Q1FY24.

For the April-September period, the Gurgaon based firm posted revenues of Rs 385 crore, registering a year-on-year growth of 58%. For H1FY24, net profits stood at Rs 8 crore.

With easy funding a thing of the past and investors choosing to bet only on financially prudent startups, companies have sharpened their focus on profitability. “The idea is to get a few more quarters under the belt with more growth and profitability and then go for the IPO,” Singh said. MobiKwik had deferred its Rs 1,900 crore IPO in 2021 due to choppy markets and a dismal debut by larger peer Paytm.

Singh said that AI (artificial intelligence) is an area where the startup will be making significant investments in the coming quarters. The idea is to leverage AI and its own data driven tool MobiKwik Lens to offer personalised recommendation to consumers and better the user experience.

“The product looks at customers’ financial data and give them very high quality nudges and recommendations in their own language. Gen AI is the direction in which we are going,” Singh said without elaborating.


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