Gurugram-based fintech firm MobiKwik on Tuesday reported a nearly-flat revenue growth and widening of its consolidated loss to Rs 56 crore for the January-March quarter of 2024-25, as credit disbursement tapered, particularly for its small-ticket loan products, following tightening of unsecured lending rules by the Reserve Bank of India.
Revenue from operations increased marginally to Rs 268 crore from Rs 265 crore in the year-ago period. It had posted a loss of Rs 67 lakh in Q4FY24.
The bottom line for the quarter under review was largely hit by payment gateway costs, which more than doubled to Rs 147 crore.
Within its financial services business, the largest credit product in terms of disbursement was MobiKwik ZIP – a 30-day interest-free buy-now-pay-later product that offers loans of Rs 1,000 to Rs 60,000. In FY24, disbursements under MobiKwik ZIP had risen to Rs 6,070 crore, from Rs 4,103 crore a year ago. But with the RBI tightening rules around unsecured lending, loan disbursals under ZIP fell to Rs 2,880 crore in FY25. Overall, credit disbursals were down more than 40% to Rs 5,358 crore in FY25, from Rs 9,093 crore in the preceding financial year.
The company’s second popular credit offering is ZIP EMI, which offers personal loans anywhere between Rs 10,000 and Rs 2 lakh, with a longer tenure of 3 to 24 months.
MobiKwik has now discontinued its 30-day ZIP product and is focusing solely on longer-tenure ZIP EMI loans, resulting in a higher share of the latter in overall disbursals in Q4.
A dampened lending business has led to a lower contribution margin of 23% in Q4, compared with 36% in the same period last year. However, the management is confident that the worst is behind it. “We are seeing positive commentary from lending partners about a potential recovery in the second half of the year,” said Upasana Taku, executive director, co-founder and CFO, during the post-earnings call.