Mobikwik CFO Highlights Regulatory Challenges and Innovation in India's Fintech Sector

In a recent address at the SBI Banking & Economics Conclave, One Mobikwik Systems co-founder and CFO Upasana Taku shed light on the unique challenges and innovations shaping India's fintech landscape. Her insights reveal a sector grappling with regulatory hurdles while pushing the boundaries of financial technology.

Regulatory Environment: A Double-Edged Sword

Taku emphasized the distinctive regulatory environment faced by Indian fintechs:

Early-stage regulation: Unlike other markets, Indian fintechs face regulatory oversight from the early stages of business development.
Multiple licenses: As Mobikwik evolved from a wallet business to a financial product distributor, it had to secure licenses from various regulatory bodies including SEBI, IRDAI, and RBI.

This regulatory framework, while challenging, also ensures a robust and compliant fintech ecosystem in India.

Mobikwik's Growth Amid Competition

Despite fierce competition, including from global players, Mobikwik has shown growth:

UPI success: The company has become one of the top three fastest-growing UPI apps in recent months.
Business evolution: Mobikwik has successfully transitioned from a wallet-focused business to a broader financial product distribution model.

Innovative Technologies in Focus

Taku highlighted several cutting-edge technologies Mobikwik is exploring:

Central Bank Digital Rupee: Described as fundamentally different from private cryptocurrencies, enabling peer-to-peer and offline transactions.
Voice-based Payments: 'Say to Pay' technology in development for multiple Indian languages.
AI-powered Collections: Implementation of AI-based collection bots to enhance efficiency.

Cybersecurity: A Growing Concern

With the rapid digitization of financial services, Taku emphasized the increasing importance of cybersecurity and risk management in the fintech sector. Fraudulent activities were cited as significant threats to consumer money, underscoring the need for robust security measures.

Q2 FY2026 Financial Highlights

Recent financial data from Mobikwik's earnings call reveals:

Metric	Q2 FY2026 Performance
Total Income	₹279.00 crores (steady)
Direct Cost	Down 10% QoQ
Contribution Margin	34.00%
EBITDA	-₹6.40 crore (80% improvement QoQ)
Loss Before Exceptional Items	-₹16.00 crore

Looking Ahead

As Mobikwik continues to navigate the complex fintech landscape, the company's focus on innovation, regulatory compliance, and financial prudence may position it for future growth. The challenges highlighted by Taku serve as a reminder of the dynamic nature of India's fintech sector and the need for continuous adaptation and vigilance in cybersecurity.

This overview of Mobikwik's strategy and the broader fintech ecosystem in India provides insights for investors, industry watchers, and fintech enthusiasts alike.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.86%	+1.50%	-4.30%	-5.50%	-51.99%	-51.99%

One Mobikwik Systems , one of India's leading fintech companies, has reported substantial operational improvements in its Q2 FY2026 results, marking a significant step towards profitability. The company's financial performance showcases its strategic focus on operational efficiency and growth in key business segments.

Financial Highlights

MobiKwik delivered steady total income of ₹279.00 crores in Q2 FY2026, while achieving remarkable improvements in its operational metrics:

Metric	Q2 FY2026	Change
EBITDA	-₹6.40 crores	80% improvement
Direct Costs	-	10% decrease
Contribution Margin	34%	-
Fixed Costs	-	5.7% decrease QoQ

The company's EBITDA saw a substantial upswing of ₹25.00 crores, improving from -₹31.00 crores in the previous quarter to -₹6.40 crores in Q2 FY2026.

Business Segment Performance

Payments Business

MobiKwik's payments business demonstrated robust performance:

Metric	Q2 FY2026	Q1 FY2026
Gross Profit	₹61.00 crores	₹59.00 crores
Margins	29.40%	27.90%

The company has emerged as one of the top three fastest-growing UPI apps in India, with UPI transactions accounting for approximately 40% of its Gross Merchandise Value (GMV). The remaining 60% comprises wallet and bill payments, which generate revenue for the company.

Lending Business

The lending segment showed promising growth with significant cost optimization:

Metric	Q2 FY2026	Q1 FY2026
Direct Costs (% of Disbursal)	4.40%	7.30%

MobiKwik operates 80% of its disbursals under the Digital Lending Gateway (DLG) model and 20% through distribution, maintaining about 3% profit from the lending business.

Strategic Developments

Fraud Incident: The company faced a fraud incident on September 12 due to a technical bug. MobiKwik has recovered 70% of the losses and made provisions for the balance.
Risk Management: In response to the incident, MobiKwik has enhanced its controls and plans to bring enterprise risk under a new Chief Risk Officer (CRO).
Product Expansion: The company has introduced loans against mutual funds and is exploring potential partnerships for gold loan distribution.

Future Outlook

MobiKwik's management expressed confidence in the company's trajectory towards profitability. The significant EBITDA improvement, coupled with strategic cost management and growth in key business segments, positions the company favorably for future quarters.

As MobiKwik continues to innovate and expand its financial services offerings, it aims to capitalize on the growing digital payments and lending market in India, while maintaining a focus on operational efficiency and risk management.