Digital payments company MobiKwik has witnessed strong growth in its lending business and aims to disburse loans worth Rs 1,500 crore in FY2020 through its platform.
The company, which competes with the likes of Paytm in the fintech space, has already disbursed over one lakh “digital loans” in September this year.
“We started our digital lending journey more than a year ago, and disbursed over 1,00,000 fully digital loans in September…We are well on track to disburse over Rs 1,500 crore across 1.2 million loans in FY2020,” MobiKwik Co-founder and CEO Bipin Preet Singh told PTI.
He added that the company is working with leading financial institutions to create loan products that customers need in small packet sizes.
“We have been able to keep operating costs low by delivering the loan completely digitally…these loans range from Rs 2,000 to Rs 2 lakh,” he said.
Singh noted that the platform has seen a three-fold growth in terms of the value (amount) of loans disbursed – from Rs 160.5 crore in the first half of FY19 to Rs 458.8 crore in the first half of the ongoing fiscal.
“There has been a 4X growth in terms of the volume (number) of loans disbursed as well, growing from 1.21 lakh loans in H1 of FY19 to 4.96 lakh loans in H1 of FY20,” he added.
This growth is also driving the company’s overall growth. MobiKwik’s annualised gross revenue is about Rs 425 crore, and in the first half of FY20, over 120 million transactions took place on its platform – up 1.6 times year-on-year.
“MobiKwik has increased its revenue at 100 per cent each for the last two years, while maintaining its sharp focus on profitability… our business has been consistently contribution margin positive since October 2018,” Singh said. PTI SR