Even as the mobile wallet company reduced its advertising and marketing cost for the period by 33% to Rs 14.5 crore from Rs 21.7 crore in FY16, much of the money was spent on fresh recruitments.
Mobile wallet firm Mobikwik has posted a 20.1% jump in losses to Rs 131.1 crore, for FY17, according to the filings with Registrar of Companies (RoC) and data platform Tofler. Its losses in FY16 stood at Rs 109.1 crore. Its revenue from operations, other than the finance company, stood at Rs 29.6 crore as against Rs 25 crore in the year-ago period — a rise of 18.4%. However, the company posted a 1.8% decline in total revenue to Rs 37.3 crore in FY17 as against Rs 38 crore in FY16. Even as the mobile wallet company reduced its advertising and marketing cost for the period by 33% to Rs 14.5 crore from Rs 21.7 crore in FY16, much of the money was spent on fresh recruitments. Employee benefit cost for Mobikwik rose by 15.7% in FY17 to Rs 23.5 crore as against Rs 20.3 crore in FY16.
Meanwhile, in FY16, losses widened by 165% to Rs 109.1 crore, compared to losses of Rs 41 crore in FY15. Also, the company’s revenue increased 192% to Rs 38 crore in FY16 from Rs 13.07 crore in FY15. The company founded by Bipin Preet Singh and Upasana Taku had raised Rs 225 crore from Bajaj Finance in lieu of 10.83% stake in August this year. Moreover, as part of the deal, Mobikwik has been allowed to offer credit facilities after the transaction. Speaking on the sidelines of the recently held Global Entrepreneurship Summit 2017, Upasana Taku, co-founder and director, told PTI, the company has so far raised somewhere between $130-140 million. “We are now looking at raising a complete round of $100 million,” she had said.