Fintech company MobiKwik's quarterly loss surged 6-fold to Rs 42 crore during Q1 FY26
Fintech platform MobiKwik, led by CEO and founder Bipin Preet Singh, has reported a net loss of Rs 41.9 crore in Q1 FY26, marking a sixfold increase from the previous year. The company, however, has made significant strides in other areas, with the payments segment driving growth.
Payments Segment Surges Ahead
The payments segment has been a standout performer for MobiKwik. Revenue from this segment climbed 24.2% year-on-year to Rs 213.1 crore. The gross merchandise value (GMV) surged 53% YoY to Rs 38,388 crore. Gross payment margins in the payments segment expanded to a record 28%, demonstrating the segment's robustness.
Focus on Longer-Term Loans and DLG Model
MobiKwik is now focusing on longer-tenure ZIP EMI loans under the Default Loss Guarantee (DLG) model. This shift comes as the company aims to improve its performance in the lending segment, which is expected to return to previous levels, approximately 40% gross margin in H2 FY26. The DLG model front-loads guarantee costs, which increased to Rs 21.4 crore in Q1, up from Rs 2.5 crore a year ago.
Cost Optimizations and Reduced Expenses
Total expenses declined 9% YoY to Rs 312.8 crore, aided by cost optimizations. Lending-related operational expenses fell to Rs 29.2 crore, from Rs 92.4 crore a year ago. The smaller-ticket ZIP product, however, has been discontinued due to macroeconomic challenges.
Regulatory Approvals and New Offerings
MobiKwik secured regulatory approvals to operate as a stockbroker and clearing member via a wholly owned subsidiary. The company also launched a new fixed deposit-backed RuPay credit card.
Challenges and Future Prospects
Despite the strong performance in the payments segment, MobiKwik faced challenges in the lending segment. Revenue from operations fell 20.7% to Rs 271.4 crore, and total income declined 18.6% year-on-year to Rs 281.6 crore. The downturn was attributed to muted lender appetite and a strategic pivot away from short-tenure ZIP credit products.
MobiKwik ended the quarter with 18 crore registered users and 46.4 lakh merchants. The company is currently piloting a PIN-less UPI product, "Pocket UPI," targeting underbanked users in smaller cities. As MobiKwik looks towards the future, it aims to continue its growth in the payments segment while navigating the challenges in the lending segment.
