Profitable growth will be crucial for Mobikwik stock to keep ticking

ET Intelligence Group: The banal of One MobiKwik has mislaid astir 13% since declaring its September 4th effect connected January 07 pursuing rising customer acquisition costs, fixed costs, and idiosyncratic incentives, which resulted successful a nett nonaccomplishment for the 2nd consecutive quarter.

Earlier, the B2C online outgo services supplier had a stellar tally connected the bourses gaining 157% wrong a week since its listing connected December 18 boosted by the increasing adoption of integer outgo methods by consumers. The institution continued to study increasing gross monetary value (GMV) and caller registered users during the quarter. However, it volition beryllium a pugnacious task to proceed reporting nett net for the 2nd fiscal twelvemonth successful a enactment fixed the nett losses successful each of the archetypal 2 quarters of FY25. This and a crisp leap successful the banal terms since listing whitethorn bounds the upside successful the abbreviated term.

Incorporated successful 2008, Gurugram-headquartered MobiKwik provides a mobile telephone app-based level for consumers and merchants to facilitate online payments. It besides offers fiscal services specified arsenic the organisation of communal funds, security products, integer gold, merchant currency advances, user EMI facilities among others.

The fig of registered users accrued to 167 cardinal successful the September 4th from 161 cardinal successful the erstwhile 4th and from 156 cardinal astatine the extremity of FY24. The company’s level walk GMV accrued by 8.7% sequentially to Rs31,052.9 crore. The level walk GMV represents each spending connected the company’s integer level done outgo and recognition products excluding nonstop indebtedness disbursals. The institution has shown beardown momentum successful this parameter successful each of the archetypal two-quarters of FY25. As a result, the level walk GMV successful the archetypal fractional of the existent fiscal twelvemonth astatine Rs59,631 crore surpassed the walk of Rs47,677.7 crore successful the full of FY24. This reflects the expanding usage of the company&rs...