Mobikwik Systems, the operator of the digital payment app Mobikwik, has reported a fraud of Rs 1.26 crore, allegedly committed by a former employee. According to a stock exchange statement, ex‑employee Gaurav Sharma misused corporate funds by falsifying merchant information.
The fraudulent activity took place between August 2023 and September 2024, and the diverted funds have been recorded in the company’s books. Mobikwik has filed a complaint with the Gurugram police, and the accused is currently in custody.
Mobikwik has implemented several corrective measures in response to the fraud. These steps include introducing a single sign‑on (SSO) login with a mandatory VPN requirement, restricting access to administrative portals, sending hourly alerts to authorized users for changes in sensitive fields such as bank account information, creating separate wallets for different business segments and reversing any unutilised merchant incentive amounts to their respective wallets.
This disclosure comes at a time when the company is already facing challenges in the public market—after a strong debut in December, Mobikwik's stock has subsequently fallen by more than 40%.
One Mobikwik Systems Ltd completed its initial public offering in December last year, raising Rs 572 crore from primary market investors.
Mobikwik Post-IPO Troubles
Mobikwik made its stock market debut on December 18, 2024, with shares opening at Rs 442.25. Investors were particularly optimistic about its IPO, buoyed by the fintech's proven profitability over a full fiscal year. However, since listing, the company's bottom line has suffered, with losses reported in two consecutive quarters.
In its most recent financial declaration, Mobikwik recorded a loss of Rs 55.3 crore in Q3 FY25, in stark contrast to a profit of Rs 5.3 crore in the same quarter the previous year. Nonetheless, operating revenue increased by 18% to Rs 269.47 crore in the December quarter, up from Rs 228.93 crore during the corresponding period the prior year.
Bipin Preet Singh and Upasana Taku founded Mobikwik in 2009. The company competes with Paytm, PhonePe and Google Pay by offering mobile wallets, BNPL services and other financial products.
