Mobikwik, an Indian digital financial services platform, reported a net loss of 56.03 crore rupee (US$6.72 million) for the fourth quarter of FY25. This marks an increase from a loss of 67 lakh rupee (US$80,432) during the same period last year.

The company’s total expenses rose by 22% to 324.28 crore rupee (US$38.92 million). Meanwhile, revenue saw a slight increase of 1.1% to 267.78 crore rupee (US$32.14 million).

For the entire fiscal year, Mobikwik recorded a loss of 121.52 crore rupee (US$14.59) in FY25. This is in stark contrast to a profit of 14.07 crore rupee (US$1.69 million) in FY24.

Annual revenue increased by 33.7% to 1,170.17 crore rupee (US$140.44 million). However, expenses surged by 49.1% to 1,271.88 crore rupee (US$152.71 million).

🔗 Source: YourStory

🧠 Food for thought

1️⃣ Unsecured lending caution driving industry-wide restructuring

MobiKwik’s financial services revenue decline (from Rs 55.79 crore to Rs 40.28 crore) reflects a broader industry trend affecting multiple fintech players.

The 41% drop in ZIP disbursals and contraction in ZIP EMI disbursals align with what industry observers have identified as a significant pullback by banks and NBFCs from unsecured lending 1.

This caution is forcing multiple fintech firms, not just MobiKwik, to pivot toward secured lending products and payment services to maintain growth 1.

The company’s strategic decision to pause ZIP for new users while shifting focus to longer-tenure ZIP EMI products demonstrates how fintech companies are recalibrating their business models in response to tightening credit conditions.

Despite these challenges, MobiKwik’s improved revenue take rate in financial services (rising from 6.1% to 7.5%) suggests efforts to optimize unit economics as volumes decline, a common adaptive strategy in changing market conditions.

2️⃣ Diverging fortunes in payments vs. lending reveal India’s fintech reality

MobiKwik’s contrasting business performance, with payments revenue surging 2.4x while lending declined, highlights a fundamental bifurcation in Indian fintech.

This pattern mirrors broader market dynamics where UPI-driven digital payments continue to accelerate (driving 75% of transaction volumes) while lending faces regulatory and economic headwinds 2.

The company’s 203% growth in payments GMV to Rs 1.16 lakh crore demonstrates how payment infrastructure is rapidly scaling in a market with 87% fintech adoption, significantly higher than the global average of 64% 3.