MobiKwik Faces ₹1.3 Crore Fraud Loss by Ex-Employee
MobiKwik, a leading digital wallet and payment company, has suffered a significant financial loss due to a fraud committed by one of its former employees. The employee, who is no longer with the company, allegedly altered merchant details to divert a staggering ₹1.3 crore between August 2023 and September 2024. This massive fraud has left MobiKwik facing financial challenges, which are reflected in its recently reported quarterly results.
According to reports, the former employee, who was responsible for managing merchant accounts, took advantage of his position to alter the details of several merchants. This enabled him to divert the funds to his own account, causing a significant loss to the company. The company discovered the fraud and immediately reported it to the police, who are currently investigating the matter.
MobiKwik has since tightened its security measures to prevent such frauds from occurring in the future. The company has also taken steps to adjust its accounts to reflect the loss, which has had a significant impact on its financial performance.
The financial implications of the fraud are significant, and MobiKwik’s recent quarterly results reflect the company’s struggles to recover from the loss. For the quarter ended December 31, 2024, MobiKwik reported a net loss of ₹55.28 crore, compared to a net profit of ₹23.15 crore in the same quarter last year. Revenue, however, rose 18% year-on-year to ₹269.47 crore, indicating that the company’s business is still growing.
The fraud is a significant setback for MobiKwik, which has been a leading player in the digital payments space in India. The company has built a strong reputation for its secure and convenient payment solutions, and the fraud has damaged its credibility to some extent.
However, it’s worth noting that MobiKwik has taken swift action to address the issue and prevent similar frauds from occurring in the future. The company has implemented additional security measures to prevent unauthorized access to its systems and has also taken steps to enhance its internal controls and oversight.
The incident serves as a reminder of the importance of robust internal controls and security measures in preventing fraud. It also highlights the need for companies to remain vigilant and proactive in detecting and preventing fraudulent activities.
In conclusion, MobiKwik’s experience serves as a cautionary tale for businesses in the digital payments space. While the company has taken swift action to address the issue, the financial implications of the fraud are significant, and it will likely take time for MobiKwik to recover from the loss.
Source: https://startuptalky.com/news/mobikwik-reports-loss/
