bKash's profit surged in 2023

Mobile financial service provider bKash logged a massive 504 percent year-on-year rise in profit in 2023.

It was to the tune of Tk 103.9 crore. In 2022, the amount was Tk 17.2 crore.

This substantial jump in profit is an impressive feat considering the fact that this subsidiary of BRAC Bank had suffered losses for three years in a row till 2021.

"During the early stage, customer-centric fintech companies like bKash with a sustainable business model need patient capital and a growth mindset," Chief Financial Officer Moinuddin Mohammed Rahgir told The Daily Star in a statement.

"It was a prerequisite to invest for expansion of technological capabilities, infrastructure, digital literacy and awareness," he said.

"bKash, the country's largest MFS provider, remains a textbook company by pursuing growth, including expansion of its service platform, customer acquisition, and maintaining its agent network," he added.

"Now a steady return on those investments is bringing the revenue growth," said Rahgir.

"The surge in profit was attributed to its continued strategic investments over the years," said BRAC Bank in its audited annual financial statement.

The company generated Tk 4,190 crore in revenues in 2023, registering a 22 percent year-on-year increase from the previous year's Tk 3,430 crore.

Similarly, the number of people availing its services reached 7.4 crore, showcasing a growth of 13.3 percent from 6.53 crore in the previous year.

Among the customers, 53.1 percent were active, meaning they made at least one transaction in the last 90 days.

In 2023, bKash added 23,000 agents to further expand its reach, taking its total to 3.64 lakh.

BRAC Bank, which currently holds a 51 percent equity stake in the company, formed bKash in 2010. It started its operations in 2011.

The MFS company had a string of investments from foreign entities. Notable among them are the Bill & Melinda Gates Foundation, Alipay Singapore E-Commerce Private Ltd, and SoftBank.