Fintech startup MobiKwik on Friday reported a revenue of Rs 540 crore for FY22, registering an 80% year-on-year growth over the previous financial year. The company further said its contribution margin rose to Rs 147 crore compared with Rs 40 crore in FY21, while its total cash burn for the first half of FY22 stood at Rs 72.5 crore.

MobiKwik claims to have turned Ebitda-positive towards the second half of the financial year, though it did not provide further details on net profit figures.

The company’s total comprehensive losses stood at Rs 110.99 crore in FY21.

FY22 was an eventful year for the fintech startup with the company raising $35 million in venture capital. Its payments platform saw 22 million user additions, taking the total user base to around 127 million. Consolidated GMV for FY22 stood at Rs 34.5 crore, a 132% y-o-y growth against the previous financial year.

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“The most significant milestone was turning Ebitda-profitable in the second half…With business now self-sustaining and the momentum growing, we remain confident of not only achieving our short-term financial goals but also a long-term objective of transforming into a full-service neobank,” Upasana Taku, co-founder, MobiKwik, said.

Currently, the firm generates revenue primarily from two segments: payments and digital financial services. The payments segment contributed to around 80% of the consolidated revenue with a contribution margin of 32%. “We have remained profitable in this segment over the past four years with a steady uptick in margins. These trends should debunk the questions around profitability in the payments space,” Taku added.

In addition, the digital financial services segment at MobiKwik registered a 426% y-o-y growth in GMV. Digital financial services constituted 5% of FY22 consolidated GMV, but it contributed 20% of the revenue. MobiKwik ended the year with 2.7 million active users in the segment, with a 5X rise in credit disbursals. The credit costs for the company’s entry-level product declined – from 5.25% to 3.95%; trending lower in the second half of the year.

“Our performance has given us the confidence to accelerate further – the first 5 months of FY23 has equaled credit disbursals of the entire FY22. In addition, we are also expanding the product portfolio to cater to the diverse needs of our ever-expanding credit-tested users. Our goal is to become the go-to financial app for our users and merchants across Bharat.” Upasana said.

In July last year, MobiKwik had filed draft papers to raise up to Rs 1,900 crore through an initial public offering (IPO). The offer consists of fresh issuance worth Rs 1,500 crore and a Rs 400-crore offer for sale (OFS) by a clutch of existing shareholders, including co-founders Bipin Preet Singh and Taku. The company was seeking a valuation of over $1 billion for the IPO. Sebi had also given an in-principle nod for the proposed IPO in October 2021. The market regulator’s approval for MobiKwik’s Rs 1,500-crore IPO is, however, set to expire in December 2022.