MobiKwik says over 90% dues repaid as Xtra scrutiny deepens
26 May 2026, 12:38 PMThe clarification comes after FIRs were registered in Bengaluru against MobiKwik and lending partner Lendbox.
Share the story on
Fintech firm MobiKwik has said that over 90% of the total amount borrowed through its peer-to-peer lending offering MobiKwik Xtra has already been repaid to lenders, days after police complaints and investor allegations intensified scrutiny around the platform.
The clarification comes after FIRs were registered in Bengaluru against MobiKwik and lending partner Lendbox over allegations that customer withdrawals were blocked and investor funds became inaccessible through the Xtra platform.
MobiKwik maintained that it operated only as a distribution layer for the lending product, while Lendbox, an RBI-regulated NBFC-P2P entity, managed the underlying lending operations. The company also said users had been informed about regulatory changes introduced after tighter RBI norms reshaped the peer-to-peer lending ecosystem and that customers were aware of risks associated with such products.
According to data shared by Lendbox and cited by MobiKwik, the remaining unpaid amount continues to remain with borrowers and is currently undergoing recovery and repayment processes. The company added that it is working with its regulated partner and cooperating fully with authorities.
The latest response comes as MobiKwik Xtra faces mounting questions from investors who claim funds parked on the platform became difficult to withdraw after changes to product functioning. Some complainants have alleged that the offering was marketed in a manner resembling fixed deposits, promising stable returns and liquidity, before withdrawal mechanisms changed.
One investor has alleged that nearly Rs 4 lakh invested through the platform remains blocked, while another claimed that Rs 91,341 out of a Rs 3 lakh investment could not be withdrawn. Reports suggest that more than 630 investors across the country may have collectively invested over Rs 6 crore through the offering.
Launched in 2022, MobiKwik Xtra positioned itself as an avenue for users to earn returns by lending directly to borrowers through a partnership with Lendbox. The model, however, came under pressure after the RBI tightened rules governing peer-to-peer lending platforms in 2024 amid concerns around investor protection, mis-selling risks and platform practices.
The regulatory changes imposed tighter limits around lending and borrowing exposure, marketing practices and product structures, forcing multiple fintech firms operating in the segment to either modify offerings or scale back operations.
MobiKwik Xtra itself underwent significant changes after the regulatory tightening, including suspension of its "anytime withdrawal" feature, which had earlier been positioned as a key convenience for users.
The developments also come shortly after MobiKwik secured an NBFC licence from the RBI, a move expected to strengthen the company’s lending ambitions even as questions around legacy lending partnerships continue to draw attention.
Who Reads Us
“I enjoy reading The Head and Tale for their coverage on the Fintech landscape. The reporting is incisive and honest, and it demonstrates a sharp understanding of the industry and the issues that concern it. I'd like to extend my best wishes to Arti for her continued success.”
“Well-researched, informative and analysis based reporting makes an interesting read. 'The Head and Tale' news portal has been demonstrating this quite well covering fintech and emerging tech sectors. Their timely updates, exclusive stories and different perspectives on these sectors help me stay informed. Kudos to Arti Singh for pursuing her passion and best wishes to the team.”
“The Head and Tale stands out for its deep industry knowledge and impressive network of sources. I especially appreciate that the reporting remains independent, rarely resorting to paid puff pieces, making it a publication I can genuinely trust. Having followed Arti’s work for years, I’ve come to rely on The Head and Tale for its unparalleled insight and truly independent coverage. Arti’s long-standing presence in the sector means her reporting is always informed, with access few can match.”
“What I really appreciate about The Head and Tale is that it doesn’t just report the news, it interprets it. The stories are well-researched, comprehensive, and bold. Arti brings a fearless lens to reporting, often asking the uncomfortable but necessary questions. She makes you pause, reflect, and rethink what it all means for the payments and fintech ecosystem. It’s rare to find journalism that’s this sharp, timely, and relevant to the work we do every day.”
“I’ve always valued journalism that goes beyond surface-level headlines. The Head and Tale does exactly that - it connects the dots, asks the tough questions, and brings clarity to the shifts shaping our evolving industry. I’ve even encouraged my team members to subscribe, because staying informed through credible, deeply reported stories is as important as building products. For me, The Head and Tale has become part of essential reading.”
