MobiKwik reports Rs 1.26 crore fraud by ex-employee

28 Mar 2025, 05:09 PM

The Gurugram-based fintech claims that the employee embezzled the funds from August 2023 to September 2024 by altering merchant details.

Team Head&Tale

Fintech company MobiKwik said it has suffered a fraud of Rs 1.26 crore due to an ex-employee’s misappropriation of funds from August 2023 to September 2024. 

In an exchange filing, the Gurugram-based payments firm disclosed that the Gurugram police are investigating the matter, and that the accused, Gaurav Sharma, is in custody.

"The impacted amount has been provisioned in the books of accounts," MobiKwik disclosed in its filings. 

The company claims that Sharma embezzled the funds by altering merchant details; and that it has taken corrective measures such as: implemented two-factor authentication and single sign-on (SSO) logins with a VPN requirement; restricted access to admin portals; sent hourly alerts to authorized persons for changes in sensitive fields including bank account details have been established; established separate wallets for different business segments to monitor merchant incentive payouts, with unutilized incentive amounts being reversed from the respective wallets; and initiated an additional reconciliation process for payouts.

MobiKwik made the disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Earlier this week, the company announced its plans to enter the stock broking segment. The company revealed that has set up a wholly-owned subsidiary Mobikwik Securities Broking Private Limited. 

While through this expansion, MobiKwik -- which is led by Bipin Preet Singh and Upasana Taku -- aims to increase its revenues and return back to profitability, the company will be competing with fintech behemoths like Zerodha, Groww, Angel One, Dhan, PhonePe, Paytm Money, Upstox among others. 

For the quarter ended December 31, 2024, the Gurugram-based fintech posted Rs 269 crore in revenue from operations -- a decline from previous quarter (Q2FY25) which stood at Rs 290 crore. However, on a yoy basis, the revenue slightly increased from Rs 228.9 crore.

The company's losses widened during the third quarter. MobiKwik posted a net loss of Rs 55 crore, compared to Rs 3.6 crore during Q2 FY25; and a profit of Rs 5 crore posted a year earlier.