UPI to be next engine of growth, says MobiKwik Co-founder

How has your UPI market share evolved recently?

Between April-September, we emerged among the fastest-growing UPI apps. Starting from a small base, our UPI transactions surged from 40 million in Q2FY25 to 138 million in Q2FY26. Transaction values doubled year-on-year, with 77 million processed in the March quarter. Having established leadership in wallets and a top-seven position in bill payments, we’re prioritizing organic UPI growth through recurring users rather than cashback incentives.

Our Pocket UPI resonates particularly in tier-II/III cities where users often maintain single bank accounts. Allocating funds to wallets for digital transactions enhances security against fraud, improves transaction success rates, and aids budget management—especially relevant for users earning under ₹1 lakh monthly who face minimum balance challenges with multiple accounts.

How do you differentiate against established competitors?

Our advantage lies in existing users—we don’t need acquisition from scratch. We’re transitioning existing wallet users to UPI-enabled wallet transactions. While UPI isn’t revenue-generating itself, it serves as an engagement tool to cross-sell third-party financial products through our platform.

What’s the timeline for achieving profitability?

We’re on track for positive EBITDA in Q3, needing just ₹15 crore improvement from the current ₹6 crore deficit. Drivers include accelerating revenue growth, reducing direct costs, and expanding contribution margins. Payments GMV jumped 50% YoY to ₹43,000 crore in Q2, with gross margins improving from 19% to 29%. Our lending business, recovering from macro headwinds, has cleared legacy issues and resumed growth. Profitability will follow sustained EBITDA positivity, though investors currently prioritize growth over immediate dividends.

What’s your user/merchant acquisition outlook?

We anticipate adding 3-4 million users quarterly, complemented by approximately 100,000 new merchants each quarter.

Was the lawsuit against your IPO merchant banker resolved?

Post-IPO, a dispute arose when Dam Capital withheld ₹42 crore earmarked for vendors from escrow, demanding priority payment. Despite our requests to release non-banker payouts, they persisted, forcing us to file suit. Delhi High Court promptly compelled full vendor payment. Our action solely aimed to honor vendor commitments from allocated funds.