BKash, the leading mobile financial service provider in the country, posted Tk 123 crore of losses in 2021, which is 83 per cent higher than the losses it posted in the corresponding period of the past year.
BRAC Bank, the majority shareholder of bKash, on Sunday disclosed the financial statements of the MFS provider in its audited financial statement for the year 2021.
The gross revenue of the company soared by 22 per cent to Tk 3,196 crore in 2021 against Tk 2,625 crore in the previous year. BKash posted losses as its operating and administrative expenses rose by 22 per cent to Tk 586 crore.
bKash has been sustaining losses since 2019.
The company is increasing its investment in new technologies and services to meet the growing demand that has affected its profitability, bKash officials said.
Established in 2011, bKash had been profitable until 2018.
In 2019, the net loss was Tk 63 crore. The company suffered Tk 67 crore of loss in 2020.
Industry insiders said that the arrival of business rival Nagad in 2019 prompted bKash to increase its strategic investments to retain its market share.
This has caused the entity to incur losses for three consecutive years, they said.
The valuation of IT sector businesses is determined based on their growth, not earnings. Growth in the company would reap benefits in the future, bKash officials said.
Before the launch of Nagad in 2019, bKash’s profits in 2017 and 2018 were Tk 48.78 crore and 18.48 crore respectively.
BRAC Bank currently holds 51 per cent equity shares in bKash. The other shareholders are Money in Motion LLC (a company listed in the US), International Finance Corporation (IFC), Softbank and Alipay Singapore.
– Input from New Age was used in this article
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