MobiKwik Faces Losses in Q1 FY25 as Expenses Surge Ahead of IPO
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New Delhi, Dec 6 (NationPress) The IPO-bound fintech company MobiKwik has announced a net loss of Rs 6.6 crore for the first quarter of the financial year 2024-25, down from a profit of Rs 3 crore during the corresponding quarter of the previous fiscal year (FY24).
For the April-June 2024 period, the firm's operating income was reported at Rs 342.2 crore. Including an additional Rs 3.5 crore in other income, MobiKwik's total income for this period reached Rs 345.8 crore.
In FY24, the company achieved an operating income of Rs 875 crore, compared to Rs 539.5 crore in FY23.
During the first quarter of FY25, MobiKwik's expenditures amounted to Rs 343.6 crore. This included Rs 127.6 crore allocated to the payment gateway, Rs 39.2 crore for employee benefits, and Rs 33.7 crore for marketing initiatives.
Furthermore, the lending operational costs for the April-June period totaled Rs 93.4 crore.
The total expenditure for MobiKwik in FY24 was Rs 853 crore, while it was Rs 617 crore in FY23.
Last fiscal year, the company reported a net profit of Rs 14 crore, a significant improvement compared to a loss of Rs 83.8 crore in FY23.
In its Red Herring Prospectus (RHP) filed with the Securities and Exchange Board of India (SEBI), MobiKwik has revised its IPO issue size to Rs 572 crore (excluding any offer of sale), down from the earlier Rs 700 crore.
The price band for the IPO has been set between Rs 265 and Rs 279 per equity share, each with a face value of Rs 2.
The IPO is scheduled to open for subscription from December 11 to December 13. Investors can bid for a minimum of 53 equity shares, and thereafter in multiples of 53 shares.
The funds raised through this issuance will be allocated as follows: Rs 150 crore for organic growth in financial services, Rs 135 crore for payment services growth, Rs 107 crore for R&D in data, ML, AI, and technology, Rs 70.28 crore for capital expenditures in the payment devices sector, and for general corporate purposes.
Founded in 2019 by Bipin Preet Singh and Upasana Taku, MobiKwik is a digital banking platform that caters to both customers and merchants.
