Mobikwik Systems has reported a fraud of Rs 1.26 crore, allegedly committed by a former employee. As per the company, Gaurav Sharma, an ex-employee, misused corporate funds by falsifying merchant data.
The fraudulent activities occurred between August 2023 and September 2024. The financial discrepancies have been recorded in the company’s accounts.
Mobikwik has filed a police complaint in Gurugram, and authorities have taken the accused into custody. In response to the fraud, the digital-payments company has introduced stricter security protocols. Measures include a single sign-on (SSO) system with mandatory VPN access, restricted admin privileges, and hourly alerts for changes in sensitive financial data. The company has also implemented segmented wallets for different business operations and reversed utilised merchant incentives.
This incident comes at a challenging time for Mobikwik, which had made a strong debut in the stock market in December 2024. However, since then, its share value has dropped decline by more than 40 per cent . It raised Rs 572 crore in its IPO, attracting significant investor interest due to its initial profitability.
Despite the strong entry into the public market, Mobikwik has struggled financially in recent quarters. It reported a net loss of Rs 55.3 crore in Q3 FY25, in stark contrast to the profit of Rs 5.3 crore it made during the same period last year. However, revenue grew 18 per cent year-on-year, reaching Rs 269.47 crore in the December quarter.
Founded in 2009 by Bipin Preet Singh and Upasana Taku, Mobikwik is in competition with Paytm, PhonePe, and Google Pay in the digital payments sector. The company offers mobile wallets, Buy Now Pay Later (BNPL) services, and other financial products.
