MobiKwik’s Q3 FY25 loss widens to Rs 55.2 cr as expenses increase

MobiKwik on Tuesday reported a consolidated loss of Rs 55.2 crore in the third quarter of Financial Year 2025 (Q3 FY25), slipping after a profit of Rs 5.27 crore the same time last year. Sequentially, the fintech company made a loss of Rs 3.59 crore in Q2 FY24.

Revenue from operations grew 17.7 per cent: From Rs 228.93 crore in Q3 FY24 to Rs 269.47 crore in Q3 FY25. However, such revenue declined sequentially by 7.3 percent: From Rs 290.64 crore in Q2 FY25.

Contribution margin remained muted in Q3FY25, declining from Rs 87.2 crore in Q3 FY24 to Rs 73 crore in Q3 FY25.

The company attributed the decline to lower financial services revenue and higher lending costs due to a transition to new default loss guarantee (DLG) contracts. It said a larger portion of such costs are incurred in the initial period of a contract.

The Gurgaon-based company’s expenses grew 43.8 per cent: From Rs 220.55 crore in Q3 FY24 to Rs 317.14 crore in Q3 FY25. Sequentially, expenses increased 10.55 per cent from Rs 286.86 crore in Q2FY25. A major part of the expenses in Q3 were for payment gateway costs. Such costs comprised more than 45 per cent of the total expenses at Rs 143.70 crore.

Revenue from financial services declined 53 per cent: From Rs 155 crore in Q3 FY24 to Rs 73 crore in Q3 FY25. MobiKwik said that new products would support revenue from financial services distribution.

ZIP, a small-ticket lending product, is being scaled down due to “lower appetite from lending partners for lower ticket sized credit products”. The company will focus on larger-tenure ZIP EMI products for “high-quality customers”.

MobiKwik’s revenue from payments more than doubled to Rs 196.5 crore in Q3 FY25, up from Rs 73.9 crore in Q3 FY24.

The company has a registered base of 172 million customers and 4.5 million merchants. It added 5 million new customers and 1,10,000 merchants in Q3