The country’s leading mobile financial service (MFS) provider bKash has generated Tk70 crore in profit in the first quarter, marking 95% year-on-year growth.
The steady increase in profits can be attributed to the fintech company’s strategic expansion of services, enhanced user experience, and a growing customer base, according to its officials.
They added that it has successfully leveraged technological innovations to streamline operations and offer a diverse range of financial products, from mobile payments to micro-savings and loans.
Moinuddin Mohammed Rahgir, chief financial officer (CFO) of bKash, told the news reporter, “During the early stages, customer-centric fintech companies like bKash with a sustainable business model needed patient capital and a growth mindset. It was a prerequisite to invest in the expansion of technological capabilities, infrastructure, digital literacy, and awareness.”
“bKash remains a textbook example of a company pursuing growth, including the expansion of its service platform, customer acquisition, and maintaining its agent network. Now, steady returns on those investments are bringing revenue growth,” he added.
In the January-March quarter of 2024, the company’s operating profit also jumped over 500% to reach Tk76.22 crore. Besides, its revenue grew by 24%, reaching Tk1,214 crore, compared to the equivalent period of last year.
Meanwhile, the robust growth in profit helped bKash – also a subsidiary of BRAC Bank – offset the accumulated loss after four years, posting Tk15.78 crore as retained earnings in the March quarter.
The financial service provider had been profitable until 2018 since its inception in 2011, but it suffered significant losses between 2019 and 2021.
BRAC Bank holds 51% shares of bKash, while Money in Motion LLC of the US owns 16.45%, Alipay Singapore E-Commerce 14.87%, International Finance Corporation 10.36%, and SVF II BEAM (DE) LLC 7.32% shares.
