Startups deepen profit focus in Dec quarter

BOTTOMLINES IMPROVE, REVENUE RISES

- AYANTI BERA

SEVERAL NEW-AGE TECHNOLOGY companies reported improving profitability in the December quarter, underscoring a continued shift away from growth at all costs strategies towards more sustainable business models.

Of the 12 major startups that have reported results for the October-December period so far, nine showed an improvement in their bottom lines, with most also posting double-digit revenue growth. Payments and fintech firms were among the strongest performers. MobiKwik swung to a profit of ₹4 crore in Q3 from a loss of ₹53 crore a year earlier, helped by sharply lower lending-related expenses. Pine Labs reported a profit of ₹42 crore compared with a loss of ₹57 crore in the year-ago period, as it continued to pivot towards softwate-led, higher-margin deals.