Fintech firm MobiKwik to double down on payment devices business

MobiKwik plans to scale soundbox and EDC deployment, targeting 10% revenue contribution as it expands offline merchant acquiring beyond Tier I cities

Fintech firm MobiKwik is eyeing monetisation from merchant payment acceptance devices as the company plans to double down on deployment of soundboxes and electronic data capture (EDC) machines this year, a senior company executive said. 

 

The Gurugram-based company plans to scale up the category in 2026, targeting an initial contribution of about 10 per cent to its top line, Mobikwik Cofounder and Chief Financial Officer Upasana Taku told Business Standard. 

“We have a focused approach in terms of geographies and the quality of merchants and the sectors that we want to acquire. We can either deploy a soundbox or an EDC machine there, both of which are profit-and-margin-driving products. We can make a good rental income there,” she said. 

 

She explained that eventually the focus on servicing high quality merchants beyond India’s Tier-I sector would open opportunities for cross-selling financial services such as merchant loans.

 

MobiKwik has a base of more than 186.6 million registered users and over 4.79 million merchants.

 

“Most of this year, we will go and build out. And in that build out, the cost will be there, the GMV (gross merchandise value) will go up, the revenue will follow. Eventually, this business will break even over a period of time,” she said.

 

Taku explained that a soundbox yields a rental income over two years, whereas an EDC machine does so over a three-year period.

 

She explained that part of the company’s initial public offering (IPO) proceeds would be utilised to fund this business as the company plans to scale it up.

 

“We had already raised ₹70 crore in our IPO for this business. Out of which, only about ₹8-9 crore has been utilised. We will utilise the balance amount,” she said, adding that it was a cost-intensive business that requires a team of feet-on-street staff.

 

MobiKwik was listed on the stock exchanges in December 2024.

 

The focus on offline merchant acquiring comes at a time when the market is dominated by players such as PhonePe and Paytm.

 

Taku explained that towns in India’s Tier-III presented a window of opportunity to grow the business despite the dominance of incumbents.

 

“We will not go as a third device (for a merchant). But, one thing one should understand is anyone who has two (acceptance devices), may also have dissatisfaction from time to time. This can either be with the device or with the relationship manager, and merchants look for replacements,” she said.

 

The company had posted a consolidated net profit of ₹4.04 crore in the third quarter of the financial year 2025-26 (Q3FY26), after it had reported a wider net loss of ₹53.18 crore in Q3FY25.

 

MobiKwik’s revenue from operations grew 7.22 per cent to ₹288.94 crore in Q3FY26, compared with ₹269.47 crore in Q3FY25. On a quarter-on-quarter basis, revenue rose 6.93 per cent from ₹270.21 crore in Q2FY26.