MobiKwik Loses INR 1.3 Cr Due To Fraud

Fintech company MobiKwik said that an ex-employee of the company defrauded the company of INR 1.26 Cr by altering merchant details. 

In an exchange filing, the company said that the ex-employee, Gaurav Sharma, siphoned off the amount from its books during August 2023 to September 2024 period. The misappropriated amount has been provisioned in the company’s book of accounts. 

MobiKwik said it has filed a complaint in the matter with Gurugram police and the said person is currently in custody. 

To fill the gaps, MobiKwik has implemented a slew of corrective measures. These include SSO (single sign on) login with VPN requirement, restricting access to admin portals, hourly alerts to authorised persons for changes in sensitive fields including bank account details, establishing separate wallets for different business segments, as well as reversing unutilised merchant incentive amounts to respective wallets.

The company’s intimation about the fraud comes at a time when it has already been going through a tough time on the bourses. After a bumper public market debut in December, the company’s shares have declined over 40%. 

MobiKwik’s Bumpy Ride As A Public Company

Heading into the IPO, MobiKwik’s proven profitability for an entire fiscal year made investors particularly bullish. However, the fintech’s bottom line has taken a hit since then and it has reported losses in two quarters since listing. 

In its last financial disclosure, MobiKwik reported a loss of INR 55.3 Cr in Q3 FY25 as against a profit of INR 5.3 Cr in the year-ago quarter. However, operating revenue grew 18% to INR 269.47 Cr in the December quarter from INR 228.93 Cr in the same quarter of previous year. 

Since then, the company has been working on fortifying its business by exploring previously uncharted territories. Briefly, here’s what the fintech has been up to in 2025:

— Yesterday, MobiKwik entered the investment tech space by incorporating a wholly owned subsidiary Mobikwik Securities Broking. Under this, it will deal in shares, stocks, securities, debt instruments, commodities, currencies and their derivatives.

— In February, it acquired a stake worth INR 1.5 Cr in B2B banking infrastructure company Blostem Fintech to expand on its fixed deposit (FD) aggregation as its core offering. 

— The company’s board approved an undisclosed investment in “one or more” subsidiaries moving forward. 

The company’s shares ended today’s trading session 2.11% up at INR 310.20