Mobikwik, India’s largest digital wallet platform, recently announced its Q2 FY25 results, and the market had an interesting reaction. Despite reporting a net loss of ₹ 3.6 crore, Mobikwik’s share price soared by 14% during intraday trading, highlighting investor confidence in the fintech giant’s growth story. But what’s driving this optimism?
Let’s dive into the details.
Key performance metrics for Q2 FY25
Mobikwik reported a standalone net loss of ₹ 2.9 crore in Q2 FY25, narrowing significantly from ₹ 11.37 crore in Q1 FY25. However, the company saw a notable drop compared to a net profit of ₹ 5.89 crore in Q2 FY24.
On a consolidated basis, the loss stood at ₹ 3.59 crore, improving from ₹ 6.61 crore in Q1 but reversing from a ₹ 5.25 crore profit in Q2 FY24.
Also read: Mobikwik Turns Profitable in FY24, Ready for IPO!
Key Financials – Q2 FY25
| Metric | Q2 FY25 | Q1 FY25 | Q2 FY24 |
| Revenue (Standalone) | ₹ 289.5 crore | ₹ 340.6 crore | ₹ 201.48 crore |
| Revenue (Consolidated) | ₹ 290.6 crore | ₹ 342.2 crore | ₹ 203.4 crore |
| EBITDA | ₹ 8.2 crore | -₹ 1.89 crore | ₹ 12.37 crore |
| Consolidated Net Loss | ₹ 3.59 crore | ₹ 6.61 crore | ₹ 5.25 crore |
| Standalone Net Loss | ₹ 2.9 crore | ₹ 11.37 crore | ₹ 5.89 crore |
Revenue and user growth
The good news for Mobikwik lies in its impressive revenue growth. Standalone revenue surged 43% YoY to ₹ 289.5 crore in Q2 FY25, though it marked a sequential dip from ₹ 340.6 crore in Q1. Similarly, consolidated revenue climbed to ₹ 290.6 crore, up from ₹ 203.4 crore last year.
Adding to this, Mobikwik’s user base swelled by 13.6% YoY to 167 million, with 6 million new users added during the quarter. The merchant base expanded to 4.4 million, reflecting strong adoption across India’s retail landscape.
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User Growth
| Metric | Q2 FY25 | YoY Growth |
| Registered Users | 167 million | 13.60% |
| Merchant Users | 4.4 million | 15.50% |
Payments and digital credit driving growth
Mobikwik’s Payments Gross Merchandise Value (GMV) skyrocketed by 267% YoY to ₹ 28,280 crore, underscoring its dominance in digital payments. Its Digital Credit GMV also increased by 26.5% YoY, reaching ₹ 1,630 crore.
The payments segment contributed ₹ 188.7 crore in revenue, growing 181% YoY. This robust performance helped push Mobikwik’s contribution margin to ₹ 118 crore, representing a 56% YoY jump.
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IPO performance and share price surge
Mobikwik’s shares debuted on December 18, 2024, at a 58.51% premium over the IPO price of ₹ 279, listing at ₹ 442.25 on the BSE. Since then, the stock has gained over 109%, trading at ₹ 583.9. On January 7, 2025, following the Q2 announcement, Mobikwik’s share price surged 14.3% intraday to ₹ 638 before settling at ₹ 607 by mid-afternoon.
This strong market response indicates that investors are betting on the company’s long-term growth, despite the near-term losses.
Outlook for Mobikwik
Looking ahead, Mobikwik is optimistic about expanding its market share in the UPI ecosystem through innovations like Pocket UPI. This new product allows users to make payments via digital wallets on the UPI network, bridging the gap between traditional wallets and India’s rapidly growing UPI infrastructure.
Additionally, Mobikwik’s focus on growing its merchant network and scaling digital credit offerings positions it well for future profitability.
Also read: A strong FMCG growth projection for 2025 results 17% surge in stocks
Final thoughts
While Mobikwik’s Q2 losses raised eyebrows, the company’s rapid growth in revenue, user base, and GMV speaks volumes about its potential. For investors, the key takeaway is clear: Mobikwik is investing heavily in scaling its operations, and these investments may yield substantial returns in the coming quarters.
So, can Mobikwik sustain this momentum and turn profitable soon? Time will tell, but for now, the market seems to believe it can.
