One Mobikwik Systems , a leading digital financial services platform, is charting its course back to profitability while expanding its product offerings, according to recent statements from the company's leadership.

Financial Outlook

Upasana Taku, Co-founder and CFO of MobiKwik, has announced that the company anticipates a return to profitability in the second half of FY26. This projection comes after a period of challenges in the unsecured lending space, which impacted the company's previously consistent profit streak.

Despite these headwinds, MobiKwik has shown signs of improvement:

This reduction in negative EBITDA indicates a positive trend in the company's financial performance.

Business Segment Performance

MobiKwik's business segments have shown varied performance:

1. Payments Business: Recorded a threefold growth in the previous year.
2. Credit Distribution: Showing signs of recovery with 30-32% growth in disbursals in recent quarters.

New Product Launches and Licenses

MobiKwik is actively expanding its financial products portfolio, particularly targeting Tier-2 and Tier-3 markets. Recent developments include:

• Securing payment aggregator and broking licenses
• Launching the 'First Card', a RuPay credit card on UPI
• Introducing 'Lens.AI', an AI-powered financial analysis tool

These initiatives demonstrate MobiKwik's commitment to innovation and market expansion in the competitive fintech landscape.

Looking Ahead

As MobiKwik navigates its path back to profitability, the company's focus on diversifying its product offerings and tapping into underserved markets could be key factors in its growth strategy. The fintech sector remains dynamic, and MobiKwik's ability to adapt and innovate will be crucial in achieving its financial goals and maintaining its position in the market.

Digital payments company One Mobikwik Systems has encountered two separate incidents: a significant security breach resulting in the theft of ₹40 crore, and a technical glitch in Haryana leading to the freezing of 2,000 merchant accounts.

₹40 Crore Security Breach

The security breach, which occurred on September 11-12, exploited a technical vulnerability following a software update. This allowed users to:

• Process transactions exceeding their wallet balances
• Bypass authentication with incorrect UPI PINs

The vulnerability facilitated over five lakh fraudulent transfers across 2,500 bank accounts before being detected during a routine audit on September 13.

Financial Impact and Recovery Efforts

The breach has had substantial financial repercussions for MobiKwik:

MobiKwik is actively collaborating with banks and law enforcement agencies to recover the remaining funds.

Investigation and Arrests

The scale and sophistication of the operation have led authorities to suspect insider involvement. Six individuals have been arrested in connection with the fraud, and investigations are ongoing.

Technical Glitch in Haryana

In a separate incident, MobiKwik experienced a technical glitch in Haryana, prompting the company to freeze 2,000 merchant accounts. The company has since resolved the technical issue and confirmed that there was no user loss or cybersecurity breach related to this particular incident.

Historical Context

This is not the first time MobiKwik has faced such challenges. In 2017, the company experienced a similar fraud incident, resulting in a loss of ₹19 crore.

Market Response

Despite these incidents, MobiKwik Systems' shares showed resilience in the market:

The company's ability to maintain investor confidence in the face of these security incidents will be crucial as it works to strengthen its cybersecurity measures and recover the stolen funds.

MobiKwik's management is expected to provide further updates on both incidents and outline steps to prevent similar vulnerabilities in the future.