bKash Limited, Bangladesh’s leading mobile financial services provider, has reported a remarkable 2,100% increase in profit, reaching Tk88 crore in the first nine months of 2023. This substantial growth in profit was primarily driven by higher revenue, particularly interest earnings.
During this period, bKash’s revenue increased by 21.90% compared to the same period in the previous year, reaching Tk3,050 crore. In the January-September period of 2022, the fintech giant’s profit was Tk4 crore, and revenue was Tk2,854 crore.
Moinuddin Mohammed Rahgir, the Chief Financial Officer (CFO) of bKash, explained that the profit growth was mainly fueled by increased revenue, particularly interest earnings. He noted that yields in government securities have significantly improved, contributing to revenue growth, and the cost of market service has improved due to business efficiencies. However, he also mentioned that further investments are required to develop the payment ecosystem and transition to a cashless and digital society in Bangladesh.
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bKash achieved an operating profit of Tk12 crore during the period, a significant improvement from the negative Tk61 crore in the January to September of 2022. The net finance income of bKash also increased by 39% to Tk122 crore in the first nine months of 2023 compared to Tk88 crore in the same period in 2022. After contributing to the Workers’ Profit Participation Fund (WPPF) and income tax, the net profit for the January-September period of 2023 was Tk88 crore.
bKash returned to profit in the July-September quarter of 2022 after three years of losses. The company had faced losses between 2019 and 2021 due to extensive spending on business expansion and new services.
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bKash is a subsidiary of Brac Bank, established in 2010 as a joint venture between Brac Bank and Money in Motion LLC, USA. It has equity partners including the International Finance Corporation (IFC), Alipay Singapore E-Commerce Private Limited, and SVF II BEAM (DE) LLC. Additionally, the Bill & Melinda Gates Foundation, Alipay, and SoftBank hold non-voting preference shares in the company.
