When MobiKwik listed last December, it was at the tail end of a cycle for startup IPOs that has not yet revived. Nevertheless, it was seen as a coming of age for the Delhi NCR-based fintech company.

Six months later though, some of the statements saying that MobiKwik has matured could be labelled as overenthusiastic. If anything, MobiKwik’s problems mirror that of Paytm in 2024, and after its Q4 results, the company finds itself deeper in the red.

MobiKwik reported a net loss of INR 121.53 Cr for the full year (FY25) as against a net profit of INR 14.1 Cr in the previous year. Naturally, there were a lot of questions from analysts and observers in the wake of the weak results and generally poor quarter from the bottom line perspective.

Can MobiKwik answer them all? Before we find out, a look at the top stories from our newsroom this week:

• New Era In Healthcare? As GLP-1 medications make their way into India, Bengaluru-based Healthify has turned to Mounjaro for its all-new weight loss programme, backed by nutrition, physical training, and lifestyle changes
• The Ullu Formula: Despite repeated crackdown on similar platforms for obscenity, Ullu has stayed online with its user base multiplying and revenue surging over the years. Here’s how the adults-only platform has kept going
• Brands In Catch-22: The multilayered ecommerce platform fees and advertising spends have become a major concern for D2C brands and ecommerce sellers, who bemoan shrinking margins and byzantine fee structures

Where MobiKwik Faltered

Despite the higher losses, the company’s revenue growth of 33.7% to INR 1,170.2 Cr from INR 875 Cr in FY24 is being seen as a bright sign. The increase in loss was primarily due to the low contribution margin of the company’s lending vertical which weighed down the overall revenue growth.

MobiKwik’s financial services vertical, which includes lending, insurance, bill payments, mutual funds, and DTH recharge businesses, was badly hit. Segment revenue dipped to INR 56.2 Cr in Q4 FY25 from INR 73 Cr in the preceding quarter, marking the second consecutive quarter of decline.

With regards to its lending business, MobiKwik said the vertical was impacted due to macro and accounting changes during the quarter.

In its earnings call, MobiKwik CFO Upasana Taku said that the lending business’ transition to a default loss guarantee........

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