MobiKwik Expects To Double Revenue this Fiscal Year, Stays Cautious on IPO
Mobikwik is expecting to close the current financial year with 100 percent revenue growth, a top company official said. Mobikwik chairperson and chief operating officer Upasana Taku told PTI that the company’s initial public offer (IPO) is a monumental opportunity for the company and will not like to hit the market when it is behaving erratically but wait for the market condition to stabilise. The company, which posted a narrowing of loss to Rs 111.3 crore and revenue of Rs 302.25 crore in the financial year 2021, expects to double the revenue by the end of current financial year. “In just two quarters we have already achieved the revenue number of last year. Any investor can calculate what will be business performance for the full year. It will look like that the company has doubled the revenue and EBITDA losses are the same or lower. If you have crossed Rs 300 crore till Diwali, then you have a clue on where you are going to land,” Taku said.
Taku said that the company will wait for the market to become stable for the IPO and till that time it will communicate to people about capital efficiency, the company and other unique selling propositions of Mobikwik. The company in its draft document for IPO mentioned that it was hit by the Covid-19 pandemic and the BNPL (Buy Now Pay Later) segment gross merchandise value decreased by 38.22 per cent to Rs 299.94 crore in 2020-21 from Rs 4,85.49 crore in 2019-20. “I think that it is common sense that if the markets are acting erratically then why do you want to risk the outcome of something for which you worked so hard? We have been working very hard for the last 12 years to get to this stage. I cannot think of any internet company which has reached over 10 crore users, having spent only Rs 700 crore. We have reached this stage after hard work so the IPO should be a bumper. We will fight for this only,” Taku said.