MobiKwik posts Rs 3.59 crore loss in Q2FY25, total income grows 42%

Fintech firm MobiKwik reported a consolidated net loss of Rs 3.59 crore in the July-September quarter (Q2) of financial year 2025 (Q2FY25) compared to a net profit of Rs 5.22 crore in Q2FY24. Sequentially, the company reduced its losses from Rs 6.61 crore in Q1FY25.

The company’s stock price jumped to an intra-day high of Rs 638 after the earnings were published and is currently over 9 per cent higher at Rs 609 per share on the BSE.

The Gurugram-based company’s total income rose 42 per cent year-on-year (Y-o-Y) to Rs 293.66 crore in Q2FY25 from Rs 206.83 crore in Q2FY24. Sequentially, total income declined 15 per cent from Rs 345.8 crore in Q1FY25.

Revenue from payments nearly tripled from Rs 66.7 crore in Q2FY24 to Rs 187.7 crore in Q2FY25. Sequentially, this segment grew 9.4 per cent from Rs 171.5 crore in Q1FY25.

In contrast to payments revenue growth, the company’s income from financial services, including lending products, declined 24.7 per cent from Rs 136.7 crore in Q2FY24 to Rs 102.9 crore in Q2FY25. Sequentially, it declined 39.7 per cent from Rs 170.7 crore in Q1FY25.

The company said it is following a “selective stance” in disbursing credit products. It is scaling down the small-ticket lending product ‘Zip’ due to macroeconomic factors.

“With a focus on controlling fixed costs, the company continues to work on balancing growth and profitability by increasing market share and launching innovative products,” the firm said in its earnings release.

On a Y-o-Y basis, expenses at the company rose 46.34 per cent to Rs 286.86 crore in Q2FY25 from Rs 196.01 crore in Q2FY24. However, the firm cut its expenses by 16 per cent quarter-on-quarter (Q-o-Q) from Rs 343.59 crore in Q1FY25.

Payment gateway costs accounted for nearly half of the company’s total expenses in Q2FY25. These costs more than tripled from Rs 43.16 crore in Q2FY24 to Rs 135.65 crore in Q2FY25. In Q1FY25, payment gateway costs were recorded at Rs 127.6 crore.

The fintech firm, which listed on the bourses last month, had a registered user base of 167 million customers as of September 2024, up 13.6 per cent Y-o-Y. Cumulatively, it had over 4.4 million merchants.

MobiKwik added 5.7 million users and 0.14 million merchants in Q2FY25. The company’s gross merchandise value (GMV) was pegged at Rs 28,280 crore during the same quarter.

Going forward, the firm will focus on products such as Pocket UPI, RuPay credit card on UPI, Bill Payments, and monetising its merchant network.