A top company official said that Mobikwik, a company that is expected to close the current financial year with 100 per cent revenue growth. Mobikwik chairperson and chief operating officer Upasana Taku told PTI that the company's initial public offer IPO is a monumental opportunity and will not like to hit the market when it is acting erratically, but wait for the market condition to stabilise.
The company's revenue is expected to double the revenue by the end of the current financial year, despite a narrowing of loss to Rs 111.3 crore and a loss of Rs 302.25 crore in the financial year 2021.
If the company is able to increase revenue and keep control of the cost, losses can be covered over in a few quarters, according to Taku.
We have achieved the revenue number of last year in just two quarters. Any investor can calculate what will be business performance for the full year. The company has doubled the revenue and EBITDA losses are the same or lower. If you have crossed the 300 crore mark till Diwali, you have a clue on where you are going to land, Taku said.
She said the company has been doubling revenue every year since the last 4 years and controlling losses.
In its draft document for IPO, the company stated that it was hit by the Covid 19 Pandemic and the BNPL Buy Now Pay Later segment gross merchandise value decreased by 38.22 per cent to Rs 299.94 crore in 2020 -- 21 from Rs 4,85. In 2019 -- 20 there were 49 crore.
Taku said the business has now crossed to pre-Covid levels and the company has had good performance during the current financial year.
She said that our BNPL business has grown 22 times compared to last year, and the payments business has grown three times.
Taku said when asked about the timelines for the launch of the IPO, the company has permission to hit the market until November 2022 and will go for listing once market conditions become stable.
I think it is common sense that if the markets are acting erratically, why do you want to risk the outcome of something you worked so hard for? We have been working hard for the last 12 years to get to this stage. I cannot think of any internet company that has reached over 10 crore users, having spent only Rs 700 crore. We have reached this stage after hard work so the IPO should be a bumper. Taku said we will fight for this only.
Paytm's shares hit an all time low of Rs 952.95 and closed at Rs 959.90 apiece on Friday, which was the closest competitor to Mobikwik in the payments segment. The closing price of Paytm shares was about 55 per cent less than the subscription price of Rs 2,150 apiece.
In a webinar last week, Paytm founder Vijay Shekhar Sharma said that the global peers of the company declined in the range of 38 - 51 per cent in the last six months and South American firms have seen up to 70 per cent dip.
Taku said that the company will wait for the market to be stable for the IPO and until that time it will communicate to people about capital efficiency, the company and other unique selling propositions of Mobikwik.