MobiKwik, a leading player in the digital financial services landscape, has reached a significant milestone by achieving its first full-year profitability in FY24. After enduring 15 years of operating losses, the company has made a remarkable financial turnaround, reporting a Profit After Tax (PAT) of ₹14.08 crore. This is a stark contrast to the ₹83.81 crore loss recorded in FY23. This financial breakthrough not only underscores MobiKwik’s resilience but also sets the stage for its impending Initial Public Offering (IPO), a move that signals the company’s readiness to scale new heights in the public market.

In an interview with CNBC-TV18, Upasana Taku, Co-Founder and CFO of MobiKwik, expressed optimism about the company's future, highlighting that the groundwork for this success has been laid over many years. Having filed for an IPO with the Securities and Exchange Board of India (SEBI) in January 2024, MobiKwik is now waiting for final approval. Taku confidently stated, "We are prepared for our next chapter as a publicly listed company, and we will continue to innovate and expand our offerings in the fintech space while maintaining the profitability we’ve worked so hard to achieve."

The journey to profitability was not an easy one. Taku emphasized that this success is the culmination of years of strategic efforts and perseverance. "Our profitability in FY24 is the result of a long-term vision and a commitment to taking bold, sometimes unconventional, steps in an industry where others may have followed more traditional paths," she said.

One of the key factors driving MobiKwik’s success has been its ability to scale both its user base and its network of merchants. With over 150 million users and 4 million merchants now on board, the company has grown from a simple payments platform to a diversified financial services provider. MobiKwik’s expansion into credit, savings, and insurance products—tailored specifically to meet the needs of those underserved by traditional financial institutions—has become a significant revenue generator. In FY24, 60% of the company’s revenue was derived from these financial products, while payments accounted for the remaining 40%.

Another critical element in MobiKwik’s turnaround has been its prudent approach to cost management. Despite a 59% surge in revenue, the company managed to reduce its fixed costs from 50% to 39% of total revenue. This disciplined financial management has not only contributed to profitability but has also positioned MobiKwik for sustainable growth moving forward.

Looking ahead, Taku anticipates that the company’s revenue mix will remain balanced between payments and financial products, with each contributing approximately 50-55%. She noted that while the payments business has lower margins, the distribution of financial products offers higher profitability, which will be crucial as the company continues to scale. "Our vision is to become the one-stop financial app for both consumers and small merchants," Taku added.

Beyond these achievements, MobiKwik has also been recognized for its customer-centric approach, offering a seamless digital experience that has resonated particularly well with India’s growing internet-savvy population. The company’s commitment to financial inclusion, providing accessible financial services to millions who previously had limited access, has not only driven its growth but also positioned it as a key player in the broader fintech ecosystem.

As MobiKwik prepares for its IPO, the company is expected to leverage its strong market position to further expand its product offerings and reach new customer segments. The successful transition to profitability, coupled with a well-rounded and diversified business model, places MobiKwik in a favorable position to capitalize on the growing demand for digital financial services in India and beyond.