MobiKwik's Strategic Shift Amidst Financial Pressures: A Path to EBITDA Breakeven
Fintech giant MobiKwik reported a consolidated loss of Rs 41.9 crore in the June quarter, primarily due to a strategic shift in its financial services business. Despite a substantial decrease in revenue, particularly in financial services, the company remains optimistic about achieving EBITDA breakeven in FY26's second half.
- Country:
- India
Fintech firm MobiKwik has reported a significant consolidated loss of Rs 41.9 crore for the June quarter, exacerbated by challenges in its high-margin financial sector and a strategic revamp.
The Gurugram-based firm's revenue dropped 20.7%, from Rs 342.2 crore in Q1 FY25 to Rs 271.3 crore this quarter, as revealed in regulatory announcements. However, a slight revenue increase of 1.3% was seen sequentially, with a narrowed loss from Rs 56 crore in Q4 FY25.
MobiKwik's financial service revenue plunged drastically from Rs 170.7 crore to Rs 58.3 crore, a fall attributed to an industry-wide moderation, a shift from BNPL products toward sustainable lending, and new accounting exercise approaches.
Despite this, the payments business revenue surged 24% year-on-year, reaching Rs 213.1 crore. Noteworthy is the company's persevering outlook, expecting an EBITDA break-even in the fiscal year's later half of FY26.
Top officials anticipate a recovery to a 40% margin post-accounting changes by September, bolstered by operating leverage.
In the first quarter of FY26, MobiKwik's expenses were Rs 312.8 crore, showing a minor drop from Rs 343.6 crore during the corresponding period last year.
Strategically, Rs 214 crore from their IPO net funds led to organic growth and tech investments, further recording a record quarterly payments GMV of Rs 38,388.2 crore.
On BSE, shares slumped 4.60% to Rs 234.35, amidst operational shifts and planned recoveries.
(With inputs from agencies.)
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