Mon Dec 09 11:50:11 UTC 2024: ## MobiKwik’s Credit Boom: Fintech Outpaces Rivals in Financial Services Growth

**Gurugram, India** – Fintech company MobiKwik is poised to dominate the financial services market, according to its recent IPO filings. Unlike larger competitors Paytm and PhonePe, MobiKwik has dramatically shifted its revenue model, prioritizing credit offerings. In fiscal year 2024 (FY24), financial services – including credit and insurance products – accounted for a staggering 64% of MobiKwik’s total revenue of Rs 875 crore (approximately $106 million USD), a significant jump from less than 20% in FY22. This surge contrasts sharply with Paytm and PhonePe, where payment services still form the core of their revenue streams.

MobiKwik’s flagship credit product, MobiKwik ZIP – a buy-now-pay-later (BNPL) service – saw disbursements soar to Rs 6,070 crore in FY24, a substantial increase from Rs 4,103 crore the previous year. Another significant contributor is ZIP EMI, offering personal loans, which witnessed a 3x increase in disbursements to Rs 3,023 crore.

While MobiKwik’s IPO filing notes that other financial products like mutual funds and insurance contribute minimally to revenue, the company’s success hinges on its substantial growth in the credit market. This strategic shift positions MobiKwik as a major player ahead of its upcoming Initial Public Offering (IPO) later this month.

In contrast, Paytm, despite diversifying into financial services, still relies heavily on payment services for 62.5% of its operating revenue in FY24. Similarly, PhonePe’s payment services contributed the majority of its revenue, recording a significant 74% jump to Rs 5,064 crore in FY24. This highlights MobiKwik’s unique and aggressive expansion in the financial services sector.

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