REX: MobiKwik Hits Success

The Indian m-payment service provider MobiKwik just reached profit: a milestone in their development.

Ambition: achieve 500 million rupees revenue in fiscal year 2020.
After 10 years, they report their first operating profit excluding interest, taxes, depreciation and amortisation.
As they aim at achieving profit, MobiKwik relied on a number of growth relays:
- Credit applications: in-app instant loans (up to 5,000 rupees) were added a year ago in partnership with the financial company Bajaj.
- Insurtance offers: a few months ago, they entered the markets for insurance and wealth management.
MobiKwik relies on 400 employees and claims 110 million users. They expect to turn fully profitable by fiscal year 2021, and they may plan to go public within 4 or 5 years.

An underserved market. As the second-largest e-payment group in India, they say they may address the issue of customers’ poor access to credit offers on their market. According to a study by the Digital Lenders Association of India, overall retail credit demand is expected to grow 60% over the next four years. MobiKwik wants to make the most of this opportunity to generate additional revenue.
Tough competition. Demand is strong, and competition is fierce... Just like MobiKwik, other large-scale digital payment platforms in India, such as Paytm, are featuring similar services. And this market is also attracting foreign start-ups, e.g.: the Kenyan FinTech Tala.
Geographical expansion. MobiKwik also stressed higher expansion ambitions and set eyes on more countries in South Asia.

MobiKwik Their credit and insurance products are now generating 25% of their revenue. Without making drastic changes to their business model, they are adding more services for their customers.
Just a month ago, MobiKwik started supporting cross-border mobile and wallet top-ups.
To this day, they raised $118 million, far behind their direct rival Paytm, which raised over $2 billion to date. Even so, this local digital payment leader remains unprofitable…

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