MobiKwik Q4: Loss Surges 83.5X YoY To INR 56 Cr

Fintech major MobiKwik saw its net loss zoom 83.5X to INR 56.03 Cr in Q4 FY25 from a loss of INR 67.1 Lakh in the year-ago period.

On a quarter-on-quarter (QoQ) basis, net loss grew 1.3% from INR 53.1 Cr.

Meanwhile, its operating revenue rose a mere 1% to INR 267.78 Cr in the March quarter of FY25 from INR 264.98 Cr in the same quarter last year. Sequentially, the top line declined over 0.6% from .

Including other income of INR 10.74 Cr, MobiKwik’s total revenue stood at INR 278.52 Cr during the quarter under review.

For the full fiscal year FY25, MobiKwik reported a net loss of INR 121.53 Cr as against a net profit of INR 14.1 Cr in the previous year. Operating revenue grew 33.7% to INR 1,170.2 Cr from INR 875 Cr in FY24.

Lending Continues To Bite MobiKwik’s Bottomline

The increase in loss was primarily due to the low contribution margin of the company’s lending vertical, and stagnant operating revenue. The fintech’s revenue from its financial services segment dipped to INR 56.2 Cr in Q4 FY25 from INR 73 Cr in the preceding quarter, marking the second consecutive quarter of decline.

With regards to its lending business, MobiKwik said the vertical was impacted due to macro and accounting changes during the quarter.

In its earnings call, MobiKwik CFO Upasana Taku said that the lending business’ transition to a default loss guarantee (DLG) model, which it began from Q3 onwards, sees it recognise a large portion of expected credit loss upfront, while revenue from these loans is recognised over time.

This, the company said, impacted its bottom line. It expects the situation to stabilise in the next 2-3 quarters.

“We do feel that over the next few quarters we will get towards that… gross margin, which was 40%… last year…” she said.

MobiKwik’s financial services vertical also includes insurance, bill payments, mutual funds, and DTH recharge businesses, among others.

It is pertinent to note that the company has made a number of new announcements pertaining to its new business verticals in recent months:

February 8: Received board nod to incorporate and invest in one or more wholly-owned insurance business subsidiaries.

March 26: Established its brokerage subsidiary, Mobikwik Securities Broking, to deal in shares, stocks, securities, debt instruments, commodities, currencies and their derivatives.

April 23: Announced the incorporation of a wholly owned non-banking financial company (NBFC), Mobikwik Financial Services.

April 21: Partnered with Poonawalla Fincorp to offer instant personal loans of up to INR 15 Lakh to its customers.

Payments A Key Focus Area

A silver lining for the fintech company was the continued growth in its payments GMV, which zoomed 12.2% QoQ to INR 33,066 Cr in Q4 FY25. MobiKwik said that its payments revenue grew 23.9% sequentially to INR 211.6 Cr in the quarter under review.

“Our payments business has shown remarkable strength, growing threefold year-on-year. Our focus for this year will be to leverage AI as a growth catalyst – to accelerate go-to-market, drive revenue growth, and expand margins through intelligent automation,” Taku said.

MobiKwik expects its payments revenue to rise further on the back of its launch of Pocket UPI, which allows users to make UPI payments directly from MobiKwik’s digital wallet.

CEO Bipin Preet Singh said that Pocket UPI will emerge as the company’s hero product moving forward. “With its high retention and the fact that we are the very natural choice given that there are not many alternatives available for such a product, we will continue to get the benefit over the years to come,” he added.

Where Did MobiKwik Spend In Q4?

MobiKwik’s total expenses jumped 22% to INR 324.28 Cr in Q4 FY25 from INR 265.71 Cr in the corresponding quarter last year.

Payment Gateway Cost: This was the biggest cost centre for the fintech major in the January-March quarter of 2025. The spending under this bucket zoomed 118% to INR 147.01 Cr from INR 67.28 Cr in the year-ago period.

Employee Cost: The spending under this head climbed 20% to INR 43.1 Cr during the quarter under review from INR 35.86 Cr in Q4 FY24. Sequentially, employee benefit expenses declined 3% from INR 44.37 Cr.

Lending Operational Cost: Lending operational expenses are primarily the costs incurred by the company towards payment of certain charges to banks and NBFCs, including facilitation fees and technology fees, for disbursing loans under MobiKwik ZIP and ZIP EMI.

The spending under this bucket declined 53.6% to INR 41.06 Cr in the quarter ended March 2025 from INR 88.47 Cr in the year-ago quarter. However, it rose 65.7% QoQ from INR 24.78 Cr.

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