BNPL not returning, says MobiKwik as losses widen to Rs 28.6 crore

MobiKwik's Q2FY26 loss widened to Rs 28.6 crore even as it tightened expenses. The fintech firm will not revive its BNPL product and is betting on ZIP-EMI and personal loans for growth.

Fintech firm MobiKwik’s losses widened to Rs 28.61 crore in the second quarter of financial year 2026 (Q2FY26), compared to a loss of Rs 3.59 crore in Q2FY25. Sequentially, losses narrowed from Rs 41.92 crore in Q1FY26.

 

How did MobiKwik’s financial performance change in Q2FY26?

 

The company’s total income, including revenue from operations and other income streams, declined 4.88 per cent to Rs 279.32 crore in Q2FY26 from Rs 293.66 crore in Q2FY25. On a quarter-on-quarter (Q-o-Q) basis, total income was down marginally by 0.9 per cent from Rs 281.61 crore in Q1FY26.

 

MobiKwik managed to keep expenses under control, which fell slightly by 0.4 per cent to Rs 285.7 crore from Rs 286.86 crore in Q2FY25. Sequentially, expenses declined 8.6 per cent from Rs 312.8 crore in Q1FY26. 

 

“Our first aim is to get to positive EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation). We want to achieve it in the second half of this financial year,” said Upasana Taku, chief financial officer and co-founder, MobiKwik.

 

The firm posted an EBITDA loss of Rs 6.4 crore in Q2FY26, compared with Rs 31.2 crore in Q1FY26.

 

Why has MobiKwik discontinued its BNPL product?

 

Taku clarified that the company’s Buy Now Pay Later (BNPL) offering, ZIP, was discontinued in March and will not return. “We decided that product (BNPL) is not coming back. What we have is our big hero, ZIP-EMI — a higher-ticket, long-term loan product which we continue to scale up,” she said.

 

In Q2FY26, MobiKwik, along with its lending partners, facilitated unsecured personal loan disbursals worth Rs 807.1 crore. Total disbursals in Q2FY25 had stood at Rs 1,626 crore, of which Rs 675.8 crore was long-term personal credit via ZIP-EMI and Rs 950.1 crore through BNPL, which has since been discontinued. ZIP-EMI disbursals grew 16 per cent sequentially from Rs 693.1 crore in Q1FY26.

 

How are MobiKwik’s revenue streams performing?

 

Revenue from financial services declined 40.45 per cent, while income from the payments segment grew 11.3 per cent in Q2FY26.

 

The company’s revenue from financial services stood at Rs 61.28 crore and payments revenue at Rs 208.9 crore, compared with Rs 102.9 crore and Rs 187.7 crore, respectively, in Q2FY25.

 

To offset the impact of discontinuing BNPL, MobiKwik is focusing on improving the unit economics of its existing products while scaling other digital credit offerings such as secured credit cards, personal loans, and loans against mutual funds, Taku said.

 

What challenges did MobiKwik face during the quarter?

 

MobiKwik stated that some of its registered merchants and users fraudulently claimed unauthorised settlements totalling Rs 40.35 crore, leading to losses in Q2FY26.

 

The company has recovered Rs 21.92 crore as of October and secured an additional Rs 6.6 crore through merchant affidavits and court orders. It is pursuing recovery of the remaining Rs 11.83 crore, while an investigation into the technical breach is underway.

 

What is MobiKwik’s user and merchant base?

 

MobiKwik has 183.5 million registered users and 4.71 million merchants. The company added 3.3 million users and about 71,000 merchants during Q2FY26.