MobiKwik, a leading fintech company set to go public, has continued its streak of profitability by logging a second consecutive quarter of positive after-tax profits. In the quarter ending September, the company reported a net profit of Rs 5 crore, accompanied by a robust year-on-year revenue growth of 52%, reaching Rs 208 crore in Q2.
MobiKwik, the rapidly growing fintech firm on the cusp of an IPO, has cemented its financial stability with a noteworthy achievement. The company has announced its second consecutive quarter of after-tax profitability, signaling its resilience and growth in the competitive financial technology sector.
In the financial report for the quarter ending September, MobiKwik reported a net profit of Rs 5 crore. This achievement follows a profitable first quarter in FY24 when the company recorded a profit of Rs 3 crore. This consistent profitability has bolstered the confidence of investors and stakeholders in MobiKwik’s financial prospects.
A standout highlight in MobiKwik’s financial performance for Q2 was its impressive year-on-year revenue growth of 52%. The company’s revenues surged to Rs 208 crore, reflecting its ability to attract a growing user base and expand its suite of fintech services.
Bipin Preet Singh, the co-founder and CEO of MobiKwik, expressed his optimism about the company’s future profitability, stating, “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.” This statement underscores MobiKwik’s commitment to maintaining a strong financial position in the lead-up to its anticipated Initial Public Offering (IPO).
MobiKwik had initially planned to launch its IPO with a target of raising Rs 1,900 crore in 2021. However, the company postponed its IPO due to market volatility and concerns arising from the lackluster debut of its larger peer, Paytm. Instead of rushing into the IPO market, MobiKwik’s strategy has been to focus on building a solid track record of profitability and growth.
“The idea is to get a few more quarters under the belt with more growth and profitability and then go for an IPO,” explained Bipin Preet Singh. This measured approach is aimed at ensuring a successful IPO when the company ultimately decides to take the plunge into the public markets.
MobiKwik’s ability to achieve consecutive quarters of profitability amidst a competitive and evolving fintech landscape reflects its strategic vision and effective execution. The company’s emphasis on growth, coupled with prudent financial management, has garnered attention from investors and industry observers alike.
As the fintech sector continues to evolve and gain prominence in India and globally, MobiKwik’s success story serves as a testament to the potential for innovation and growth in the industry. With its eyes set on a promising IPO in the near future, MobiKwik is poised to play a significant role in shaping the future of digital finance.
In conclusion, MobiKwik’s achievement of a second consecutive profitable quarter and its robust revenue growth demonstrate the company’s resilience and potential. With a strategic focus on continued growth and profitability, MobiKwik is making deliberate strides towards an IPO, which has the potential to be a major milestone in the company’s journey towards long-term success in the fintech sector.
