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India’s MobiKwik aims to clock about $69 mn in revenue in FY20, eyes IPO in 4 years

MobiKwikMobile payments company MobiKwik said on Tuesday that it has turned cash-flow positive and expects to make 5 billion rupees ($69.3 million) in revenue this fiscal year, according to media reports.

“We have successfully crossed the first hurdle of hitting cash flow positive in August this year. Our next goal is to achieve annualised revenue of ₹700 crore (about $97.1 million) run rate in March 2020. We will double down our fintech scale in 2020 to make FY2021 our first full year of profitable growth,” MobiKwik co-founder Upasana Taku told PTI, according to the reports.

Revenue run rate indicates the total sales value of merchandise sold through a marketplace for a certain period.

MobiKwik, which counts Paytm and PhonPe as rivals, is also planning for an initial public offering in about four years, the reports added.

“Once we hit this landmark milestone (₹700 crore revenue run rate), we will march forward towards an IPO in 2023-24. We aspire to become the first Indian fintech and first Indian payments company to get listed in India,” the reports quoted Taku as saying.

She further said the competition in the market was intense and was “flooded” with cashback and discount offers, while banks with lesser customer base were highly profitable and listed on the exchanges. So, it decided to find a way to make the business profitable. That’s when it decided to use profile data of its users to help serve them better, Taku added.

“In January 2018, we launched our first fintech product – a Digital Credit Line linked to user’s MobiKwik account, followed by ‘sachet-size’ insurance products. We also have wealth management and digital gold products… All these fintech products put together now contribute 25% to our revenues,” she said.

The company now aims to grow its customer base to 250 million users from the current 110 million users in the country.

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