Why MobiKwik Share is Falling Today: ₹40 Crore Fraud Triggered by a System Glitch

MobiKwik shares were under pressure today, dropping nearly 3.6%, after the company disclosed a serious system glitch that led to unauthorized settlements worth ₹40 crore earlier this month. The news has raised fresh concerns around fintech security and investor trust.

What Happened?

According to MobiKwik’s filing with the stock exchanges, the incident took place between September 11 and 12, 2025. Some registered merchants and users, acting in collusion from certain locations in Haryana, managed to exploit a loophole in the system and claim unauthorized settlements.

The intent was clear, to gain unfair monetary advantage. Importantly, the company clarified that none of its employees, key management personnel, or insiders were involved in the fraud.

How Big Is the Impact?

• The total amount involved was ₹40 crore.
• So far, around ₹14 crore has already been recovered.
• That leaves an estimated net hit of about ₹26 crore on the company.
• Police have lodged an FIR in Gurugram, made arrests, and frozen several bank accounts linked to the fraud.

MobiKwik said it is taking “aggressive collection efforts” while pursuing the legal route to recover the full amount over time.

How the Market Reacted

The disclosure and the media coverage immediately rattled investors. On Tuesday, MobiKwik shares fell by about 3.6% intraday to around ₹300 on the BSE.

Investors are worried not just about the direct financial impact, but also about the operational risk and reputational damage such an incident brings. In the fintech space, trust and security are everything, and a glitch of this scale raises difficult questions.

Why This Matters for Investors

This is not just about the money lost. For MobiKwik, the real challenge is:

• User trust: Customers may think twice before relying on the platform.
• Regulatory scrutiny: RBI and NPCI could tighten oversight, adding compliance costs.
• Profitability pressure: Already loss-making, MobiKwik now faces another layer of financial and reputational stress.
• Investor confidence: Big shareholders and retail investors may stay cautious, which could weigh on the stock further.

The Bigger Picture

MobiKwik was already facing challenges like persistent quarterly losses, valuation corrections, and stake sales by big investors. This new glitch adds to the list of concerns, making it harder for the company to convince the market of its long-term stability.

For now, much will depend on how quickly MobiKwik manages to recover the lost money and restore confidence among users and investors.

Bottom Line

MobiKwik’s stock fell today because of a ₹40 crore fraud triggered by a system glitch, with a net estimated impact of ₹26 crore. While recovery efforts and police action are underway, the incident has raised red flags about the company’s risk controls, spooking investors and dragging the share price down.

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