The frenzy over India’s startup IPOs could be back in fashion, but for several of the new entrants to the market last year, the honeymoon is already over. Like MobiKwik, which has been in a world of pain since the listing.

MobiKwik’s net loss increased over six times on a year-on-year basis to INR 41.9 Cr, from INR 6.6 Cr for the same quarter last year, while operating revenue declined 20.7% YoY to INR 271.3 Cr.

And yet, the story isn’t entirely one of decline. MobiKwik delivered its highest-ever payments gross margin and GMV growth during the quarter, signalling underlying strength in its core payments business. Sequentially, losses narrowed, contribution margins expanded, and unit economics improved — so is MobiKwik getting a handle on things or is it in for more pain?

Let’s find out, but after a look at the top stories from our newsroom this week:

• Is Opinion Trading Dead? Probo and other opinion trading apps surged during IPL 2024, letting users bet on real-world outcomes like sports and elections. These platforms now face legal heat, with ED raids and multiple state-level FIRs and PILs challenging their legality
• Google’s AI Push For Ads: Google is not just leveraging its YouTube and Search tools to scale massive ad revenues in India, but has also engaged brands, startups to solve their marketing pain points. So, how is Google AI wooing Indian brands?
• WeWork India’s IPO Googly: The WeWork IPO comes amid a coworking boom, but as a 100% offer for sale, there are concerns that this is largely an exit event for existing investors rather than a growth stock. Will IPO investors see any upside from this issue?

Revenue Engine Slowing Down

A large portion of this pressure originated from its financial services business, which was a main growth driver in the past, as revenue fell 65% from INR 170.7 Cr in Q1 FY25 to mere INR 58.3 Cr in Q1 FY26, reflecting a sharp deceleration in lending and credit-linked products.

Meanwhile, the cost structure of the company continues to be burdensome. Increasing platform transactional costs, higher expenses on lending expansion and financial guarantees, and ongoing fixed costs burdened the bottomline. Toss in greater expenditure on technology and product development, and the scenario looks bleak.

MobiKwik’s post-IPO experience has been one of declining........

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