Bangladesh' bKash Fintech Service logs 2,100% higher profit in Jan-Sep 2023

[Bilal9]

The organization also reported operating profit this year, which was a loss a year ago due to its high cost in the commercial and administration segment.​

Infographic: TBS

bKash Limited — country's leading mobile financial services (MFS) provider — has registered a whopping 2,100% growth in profit to Tk88 crore in the first nine months of 2023 as it saw a higher revenue mostly fuelled by the interest earnings.

At the time, bKash's revenue grew by 21.90% over the same time of the previous year to Tk3,050 crore.

During the January–September period of 2022, the fintech giant's profit was Tk4 crore, and revenue was Tk2,854 crore.

Moinuddin Mohammed Rahgir, chief financial officer (CFO) of bKash, told The Business Standard in a written comment, "For the first nine months of the year, bKash has been delivering operating profits in two of the three quarters. The net profits are being driven by revenue growth mostly fuelled by the interest earnings."

He further stated, "Yields in government securities have significantly improved, which has led to the revenue growth. Moreover, the cost of market service has improved due to efficiencies in the business.

"There is ample room to develop the payment ecosystem to truly evolve into a cashless and digital society in Bangladesh, which will require significant investments."

According to its financials, the MFS provider made a Tk12 crore operating profit during the period, which was negative Tk61 crore in the January to September of 2022.

While bKash's net finance income jumped by 39% to Tk122 crore in the first nine months of 2023, up from Tk88 crore in the same time of 2022.

After contributing to the Workers' Profit Participation Fund (WPPF) and income tax, its net profit stood at Tk88 crore in the January–September period 2023.

bKash had returned to profit in the July–September quarter of 2022 after three years.

The mobile financial services provider had been in profit until 2018 since its inception in 2011, but it suffered significant losses between 2019 and 2021.

bKash officials then said the company was spending a lot to expand the business and add new services, which put the company's earnings into negative territory.

bKash is a subsidiary of Brac Bank. It was incorporated in 2010 as a joint venture between Brac Bank and money in motion LLC, USA.

International Finance Corporation (IFC), Alipay Singapore E-Commerce Private Limited, and SVF II BEAM (DE) LLC became equity partners of the company.

Apart from the above, the Bill & Melinda Gates Foundation, Alipay and SoftBank hold non-voting preference shares in the company.