80% customers are either new to credit or have thin credit file: MobiKwik

When considering the monthly income split of the fintech’s user base, 63 percent of MobiKwik's users earn less than Rs 30,000, 27 percent earn between Rs 30,000 to Rs 50,000, and 10 percent earn more than Rs 50,000. On the other hand, 59 percent of its users are from Tier 3 cities, 21 percent hail from Tier 2 cities and the remaining 20 percent come from Tier 1 cities.

An analysis of the age distribution of MobiKwik’s target customer base revealed that a majority, i.e. 54 percent of users belonged to the 18-30 age group, 35 percent of users were between 31-40 years and the remaining 11 percent of users were between the ages of 41 and 60.

This shows that MobiKwik’s primary users are millennials and Gen Z, who have remained underserved by traditional banks and non-banking financial companies (NBFCs), the fintech said.

Among the various end-use cases of the loans provided by MobiKwik, a 66 percent are specifically dedicated to income-generating purposes. A breakdown of the remaining loan utilisation revealed that 19 percent is utilised for recharging services, 11 percent for e-commerce transactions and 4 percent for miscellaneous purposes.

Commenting on the same, Upasana Taku, Co-founder and COO at  MobiKwik said, "We have expanded our services beyond digital payments to include micro-loans and investment products. By leveraging the extensive user base and digital infrastructure, MobiKwik has made these financial products accessible to individuals who previously had limited or no access to formal credit or investment products, thus fostering financial inclusion in Tier 2 cities and beyond."