Mobikwik Reports Significant Losses for FY2025 Despite Growth in Payment Activities
Mobikwik, a prominent Fintech platform based in Gurugram, has reported a substantial loss for the financial year 2025, reversing its profitability from the previous year. The financial downturn can be attributed to rising costs and a decline in credit activity, despite notable gains in payment processing.
Financial Performance Overview
In the fourth quarter of FY2025, Mobikwik recorded a net loss of ₹56 crore, marking a sharp decline from the loss of ₹67 lakh in Q4 FY2024. For the entire financial year ending March 31, 2025, the company registered a net loss of ₹121.52 crore, a stark contrast to the profit of ₹14.07 crore reported in FY2024. Total expenses surged by 49.1% year-on-year, reaching ₹1,271.88 crore, outpacing revenue growth of 33.7% to ₹1,192.5 crore.
Growing Payment Activities Amid Margin Pressures
Despite financial challenges, Mobikwik’s payment segment has shown robust growth. The company’s gross merchandise value (GMV) skyrocketed by 203% year-on-year to ₹1.16 lakh crore in FY2025, with segment revenue more than doubling to ₹767.4 crore from ₹317.1 crore in the previous year. This growth has been bolstered by a substantial reduction in user incentives by 62% and a decrease in payment gateway fees by 9%, which together delivered a gross margin of 19.7%, one of the highest in the industry.
Challenging Revenue Growth and Rising Costs
Despite the increase in payment activities, overall revenue growth has been sluggish. In Q4 FY2025, Mobikwik’s income rose by only 1.1% to ₹267.78 crore, while total expenses climbed by 22% to ₹324.28 crore. A significant portion of the costs was attributed to payment gateway fees, amounting to ₹147 crore, or 45% of total expenses for the quarter, according to company filings.
Decline in Credit Disbursements
Mobikwik’s financial services division faced challenges, particularly with its short-term credit product, ZIP. The disbursement amount plummeted by 41% from ₹9,093 crore in FY2024 to ₹5,358 crore in FY2025. Additionally, ZIP EMI disbursements declined from ₹3,023 crore to ₹2,477 crore. The slowdown stems from a decrease in loan partner appetite and a strategic pivot by Mobikwik to pause new user on-boarding for ZIP, focusing instead on Zip EMI products with better risk-adjusted returns.
Expansion of User Base and Merchant Network
On a positive note, Mobikwik added 4.45 million users in Q4, bringing its total user base to 176.4 million by March 2025, representing a 13% annual increase. Furthermore, the company onboarded 0.53 million merchants during FY2025, expanding its merchant network to 4.59 million, primarily comprising offline retailers. This growth in user base and merchant partnerships is crucial for enhancing payment activity and overall revenue potential.
Future Direction and Innovation Goals
Looking ahead, Upasana Taku, Executive Director, Co-founder, and CFO of Mobikwik, stated, “Our payment activities have exhibited remarkable strength over the past three years. This year, we aim to leverage AI as a growth catalyst to enhance marketing strategies, stimulate revenue growth, and extend our margins through intelligent automation.” Last month, Mobikwik’s payment subsidiary, Zaakpay, received approval from the RBI to operate as a licensed payment aggregator and gateway, further positioning the company for future success.