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MobiKwik’s Q4 Blues Usher In Litmus Test
- MobiKwik's Q4 results show increased losses with a net loss of INR 121.53 Cr for FY25, compared to a profit in the previous year.
- The company faced challenges in its financial services vertical, particularly in lending, insurance, and bill payments.
- MobiKwik attributed the increased loss to the low contribution margin in its lending vertical.
- The company is transitioning its lending business to a default loss guarantee (DLG) model, impacting its bottom line.
- MobiKwik plans to focus on strengthening its core payments business, recalibrating lending operations, and developing its ZaakPay payment gateway.
- The company saw a 12.2% QoQ growth in payments GMV, expecting further revenue growth with the introduction of Pocket UPI.
- In terms of UPI transactions, MobiKwik lags behind recent entrants like Navi and Super.Money, posing a challenge for profitability.
- Revenue recognition challenges due to DLG impacted lending contribution margins temporarily, with hopes for recovery in FY26.
- MobiKwik's future strategy includes focusing on less risky lending options and promoting products like RuPay credit card.
- The company also aims to enhance its merchant lending efforts to expand its borrower base among small merchants.
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