MobiKwik Suffers ₹1.3 Cr Fraud, Implements Security Measures
- MobiKwik reported that ex-employee Gaurav Sharma misappropriated ₹1.26 Cr between August 2023 and September 2024 by altering merchant details.
- To prevent future fraud, MobiKwik implemented security measures, including SSO login with VPN, restricted admin access, and hourly alerts.
Fintech company MobiKwik has reported a financial fraud of ₹1.26 Cr carried out by a former employee.
According to an exchange filing, the ex-employee, Gaurav Sharma, misappropriated the amount between August 2023 and September 2024 by altering merchant details. The siphoned amount has already been provisioned in the company’s financial records.
MobiKwik has taken legal action by filing a complaint with the Gurugram police, and Sharma is currently in custody.
In response to the incident, MobiKwik has rolled out several corrective measures to prevent similar breaches in the future. The new security enhancements include:
- SSO (Single Sign-On) Login with VPN Requirement – Ensuring secure access.
- Restricted Admin Portal Access – Limiting who can make changes.
- Hourly Alerts for Sensitive Changes – Notifying authorized personnel of any modifications.
- Separate Wallets for Business Segments – Creating financial transparency.
- Reversal of Unutilized Merchant Incentives – Ensuring funds are allocated correctly.
Stock Market Struggles and Strategic Expansion
The revelation of this fraud comes at a time when MobiKwik is already facing challenges in the stock market. Despite a strong IPO debut in December, the company’s shares have fallen by over 40%.
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In Q3 FY25, MobiKwik reported a loss of ₹55.3 Cr, a stark contrast to its profit of ₹5.3 Cr in the year-ago quarter. However, its operating revenue grew 18%, reaching INR 269.47 Cr.
To counter setbacks, the company has been actively diversifying its business:
- Launched Mobikwik Securities Broking – A new subsidiary for investment tech.
- Acquired a stake in Blostem Fintech – Strengthening its fixed deposit aggregation services.
- Board-approved investments – Future expansion into new subsidiaries.
Despite recent challenges, MobiKwik’s shares closed 2.11% higher at INR 310.20 today.
Edited by Harshajit Sarmah
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