Digital payments major MobiKwik is hoping to break even by next month and keep losses contained at just about $3 million in the current fiscal year.
“We are hoping to break even either this month or next month. We expect our losses to be as low as $2-3 million in 2019-20,” said Upasana Taku, Co-founder, MobiKwik.
With its focus on distribution of financial products and digital lending, the company is also looking at a much higher revenue growth.
“In April 2018, we were earning $1-1.2 million in revenue. Right now, we are in upwards of $60 million,” Taku told BusinessLine, adding that by the end of the fiscal, the company is eyeing monthly revenue to touch about $10 million and indicated that $100 million in annual revenue may not be too far.
Attributing a part of the higher revenues to its focus on distribution of financial products, she said it has increased the profitability per user as the customer is not only doing payments but is also taking one or two financial services.
MobiKwik, incorporated in 2009, which competes with companies such as Paytm in the payments space, has, in the last one year, moved from a pure wallet and payments business to digital lending too, distributing financial products such as insurance and wealth management and investments.
‘Middle India’ focus
Taku said that at present, about 75 per cent of the revenue comes from the wallet business and 25 per cent from the financial services side. However, she expects it to turn to a 50:50 ratio in the next two to three years.
“Wallet business has grown 4x in the last one year and financial services has grown 14x. We started with a small base and we literally started last year. So the growth looks very high,” she said, adding that the company is looking to focus at “middle India” for distribution of financial products of a small ticket size.
On Sunday, MobiKwik signed a strategic partnership with Reliance Nippon Life Asset Management to launch ‘Kwik Save’, a unique investment product in the liquid fund category, with an instant redemption feature.
With the new mutual fund, users can transfer amounts as low as ₹100 from their bank account into Kwik Save and yet have instant access to their money through a 24x7x365 instant redemption feature.
“There are 40 to 50 crore people in Middle India who are earning between ₹20,000- 40,000 per month and require all the products — credit, insurance, investments but at the right ticket size,” she said.
MobiKwik is currently issuing about 1 lakh loans on its digital platform and has a total user base of over 11 crore.
Source: The Hindu