MobiKwik Achieves Profit Ahead of IPO: The startup sector is experiencing significant upheaval lately. On one hand, Ola Electric’s IPO received an overwhelming response from the market, and the company has dramatically reduced its losses. Meanwhile, the fintech startup MobiKwik, which is preparing for its own IPO, has made headlines by recording its first-ever profit. This development echoes the journey of another startup, Oyo Rooms, which is also gearing up for an IPO. MobiKwik has now become the first fintech startup to turn a profit.
MobiKwik announced on Tuesday that it has achieved a profit of ₹14.08 crore in the fiscal year 2023-24. This marks the first time since the company’s inception that it has recorded a profit. Competing against major players like Paytm and PhonePe, both of whom are still awaiting their turn to break even, MobiKwik’s success stands out. In contrast, during the fiscal year 2022-23, MobiKwik reported a loss of ₹83.81 crore.
Celebrating Recovery from Losses
Utasna Taku, Co-Founder of MobiKwik, expressed her happiness regarding the company’s profitability. She stated, “We are delighted to come out of losses and achieve profitability. We have introduced very exciting and innovative products on our platform. By leveraging machine learning and data analytics, we have recorded better sales, which has contributed to our profits.” This highlights MobiKwik’s emphasis on technology-driven solutions to enhance customer engagement.
Key Financial Insights
Taku also indicated that MobiKwik’s non-payment business has grown significantly, accounting for just over 50% of the total revenue. This shows that the company has successfully provided its active users and merchants with one or more financial products. The total income of MobiKwik surged by 58.67%, amounting to ₹890.32 crore.
IPO Timeline: What’s Next?
When questioned about the timeline for MobiKwik’s IPO, Taku mentioned that the company has already submitted its draft prospectus and is currently awaiting approval from SEBI (Securities and Exchange Board of India). As soon as they receive the green light, MobiKwik will launch its IPO and expedite the listing of its shares. Following the closure of Paytm’s wallet business, MobiKwik has established itself as the market leader in this segment. By July 2024, the company anticipates having 15.7 crore registered users and 40 lakh merchants.
Oyo’s Profitability Milestone
In a similar vein, Ritesh Agarwal’s startup, Oyo, has also reported a substantial profit for the fiscal year 2023-24, reaching ₹229 crore. The company’s results exceeded expectations, as it had projected a profit of ₹100 crore for the year. The announcement of Oyo’s profitability comes at an opportune time as it prepares to launch an IPO worth ₹8,430 crore, aiming for a significant entry into the stock market.
Conclusion
The recent profitability of both MobiKwik and Oyo marks a pivotal moment for startups in the fintech and hospitality sectors, respectively. As these companies prepare for their IPOs, their financial milestones signal a potential recovery and growth phase for the Indian startup ecosystem as a whole.
