bKash reports Tk218 crore profit in nine months

bKash Limited, the country's premier mobile financial services provider, reported a net profit of Tk218 crore in January-September 2024, marking a staggering 147% increase from the amount recorded in the same period of last year.

The steady increase in profits can be attributed to the fintech company's strategic expansion of services, enhanced user experience, and growing customer base, according to its officials.

They added that the company has successfully leveraged technological innovations to streamline operations and offer a diverse range of financial products, from mobile payments to micro-savings and loans in partnership with banks and non-bank financial institutions.

bKash, a subsidiary of BRAC Bank, demonstrated robust revenue growth, surging by 19% to Tk3,645 crore compared to the previous year, according to the company's financial statement published on its website on Wednesday (30 October).

"Like any other sustainable business, bKash, the customer-centric fintech pioneer, necessitated patient capital and a growth mind-set," Moinuddin Mohammed Rahgir, chief financial officer of bKash, said.

He added, "Being a textbook company, bKash invested with a focus on the expansion of its technological capabilities and infrastructure, and fostering digital literacy among the stakeholders including millions of customers.

"Those strategic investments for 13 years have been instrumental in establishing the largest digital financial services platform, active customer base as well as the strongest agent and merchant network in the country. All these accumulated in the steady growth in revenue for the company."

In the July-September quarter of this year, bKash's profit was Tk109 crore, which was Tk49 crore a year ago at the same time.

Meanwhile, the robust growth in profit helped bKash offset the accumulated loss after four years, posting Tk164 crore as retained earnings at the end of September.

The financial services 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.

According to bKash, it currently has around 7.5 crore customers, along with 3.79 lakh agents and 8 lakh merchant accounts across the country.

Currently, bKash charges Tk18.50 per thousand for cash outs and Tk5 for each fund transfer to another account.