MobiKwik Concall Notes Till Q3 FY26
What I like about management is they and friendly and accept their mistakes. And In Lending Business they are focused on the risk first, growth later. [OPINION]
Focus on chasing profit and growth via frugal innovation. Focus on Tier 2 ,3 and beyond cities. People who are income upto 12 lakh or not paying taxes.
Total User : 186.6 Mil and Merchant: 4.79 Mil
Adding 5 million users / quater. 20 million users/ quater.
And 1 to 1.5 lakh merchant per quater.
Merchant Acquisition Strategy: Selective to good quality and catagoreis in Tier 2,3 and beyond
Customer acquisition cost around 35 rs with up and down of 4-5 rs.
Payment Business
Payment Business Focus: Wallet and UPI Credit Card
Instead of looking at payment take rate look at NPM ( Net Payment Margin) , which will be around 12-15 bps. And EBITDA margin in payment business will be 22-25 %.
NPM = Take Rate - PG Cost - User Incentive
EBITDA = Net Revenue - PG Cost - User Incentive
• Zakpay is very small part of revenue. Admited the mistake of not paying attention
• Merchant Credit Acesss ( MCA ) or Merchant Lon is very small.
In Lending Business
Net TR = Take Rate - DLG Cost - Other Credit Cost
Contribution Margin = 40 %
Net TR - 4 to 5%
• Two types of loan : FLDG and Marketplace. In FLDG they take credit risk ( 3- 5% FLDG ) and collection risk. But in marketplace they don’t take any risk.
• FLDG loans are mostly upto 1 Lakh Rs amount or monthly EMI of 10K. Anything above 1 Lakh Loan are on Marketplace model, because they have more risk and they don’t want to take that risk.
• Small mount 10K, 20K loans can also be on marketplace model, whey they are not satisfied with the user risk profile.
• FLDG Take Rate = Processing Fee + NIM
Upto 7-8 % = Upto 4.5 to 5% + 3.5 %
• Non FLDG = Only Processing Fee ( 2.5 - 3.5 % )
• They can’t put number on Loan growth, because it depends on the lending partner.
• Total loans GMV : 80 % is FLDG and 20 % is non - FLDG
• Lending Focus : adding new partner. Total 10 as of Q3. They also have applied for NBFC license, under process
• Lending Business is linked to the lending cycle. They grow as their partner grow.
• NO Significant monetization from wealth and broking business in near term.