Fintech company MobiKwik has reported a fraud case involving a former employee, Gaurav Sharma, who allegedly misappropriated ₹1.26 crore by altering merchant details. According to an exchange filing, the fraudulent activity occurred between August 2023 and September 2024. The company has accounted for the misappropriated amount in its financial records.

MobiKwik has filed a complaint with the Gurugram police, and the accused is currently in custody. In response to the incident, the company has introduced multiple security measures, including Single Sign-On (SSO) login with VPN requirements, restricted access to admin portals, hourly alerts for sensitive changes, dedicated wallets for different business segments, and reversal of unutilized merchant incentives.

The disclosure of this fraud comes at a challenging time for MobiKwik, whose stock has declined over 40% since its strong public market debut in December. Despite initially attracting investor confidence with a full fiscal year of profitability ahead of its IPO, the company has since reported losses in two consecutive quarters.

In its latest financial results, MobiKwik posted a loss of ₹55.3 crore in Q3 FY25, compared to a ₹5.3 crore profit in the same quarter last year. However, operating revenue saw an 18% rise, reaching ₹269.47 crore in Q3 FY25 from ₹228.93 crore in the previous year’s corresponding quarter.

To strengthen its business, MobiKwik has been expanding into new financial sectors. In 2025, the company entered the investment tech space by establishing a wholly owned subsidiary, MobiKwik Securities Broking, to deal in stocks, securities, and financial instruments. Additionally, in February, it acquired a ₹1.5 crore stake in B2B banking infrastructure firm Blostem Fintech to enhance its fixed deposit aggregation services.

Looking ahead, MobiKwik’s board has approved further investments in one or more subsidiaries. Despite recent setbacks, the company’s shares showed a slight recovery, closing 2.11% higher at ₹310.20 in today’s trading session.