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MobiKwik Q4 Loss Surges as Financial Services Decline Prompts Strategic Shift

The fintech firm's net loss widened to Rs 56.03 crore, driven by a sharp drop in short-tenure lending revenue, while payments revenue doubled year-on-year.

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Overview

  • MobiKwik reported a Q4 FY25 net loss of Rs 56.03 crore, an 8262.7% year-on-year increase, as financial services revenue fell 23% quarter-on-quarter to Rs 56.2 crore.
  • Payments revenue doubled year-on-year to Rs 211.6 crore, with gross merchandise value (GMV) growing 129% to Rs 33,100 crore, showcasing the resilience of its payments segment.
  • The Reserve Bank of India's tightened rules on unsecured lending led to a 40% drop in annual disbursals for MobiKwik's short-tenure BNPL product, ZIP, which has been discontinued.
  • The company is pivoting to longer-tenure credit products, such as ZIP EMI, and secured lending to stabilize margins and address lender concerns.
  • Shares fell 6.08% to an intraday low of Rs 262 after the earnings report, with analysts projecting a potential financial services recovery in the second half of FY26.