Scaling UPI and RuPay Card Launch

MobiKwik Shifts Focus to UPI Expansion and RuPay Credit Card Launch to Boost Growth

Fintech platform MobiKwik is strengthening its focus on scaling its UPI (Unified Payments Interface) business and preparing to launch a RuPay credit card to the public as part of its strategy to drive long-term growth. Upasana Taku, the executive director, co-founder, and CFO of MobiKwik, emphasized these priorities during the company’s analyst call following its Q3 FY25 earnings report.

“The IPO provided us with ₹572 crore, and we are strategically planning its allocation to double down on existing business lines while investing in new ones that offer long-term growth potential,” Taku explained. She noted that the company is adopting a prudent approach to resource allocation, focusing on opportunities that will enhance operational efficiency and future profitability.

Financial Performance and Market Dynamics

MobiKwik reported a quarterly loss of ₹55 crore in Q3 FY25, a decline from the ₹5 crore profit it registered during the same period in Q3 FY24. However, revenue from operations grew to ₹269 crore in Q3 FY25, up from ₹229 crore year-over-year. For the nine months of FY25, the company generated ₹346 crore in revenue, surpassing its full-year FY24 figure of ₹317 crore.

Despite the short-term losses, MobiKwik remains optimistic. “We see green shoots, and we expect disbursals will come back to the same level as FY24, which will result in stronger margins and bottom-line performance in the quarters to come,” Taku said.

The company’s payments business grew by an impressive 166% in Q3 FY25, generating ₹196.5 crore in revenue. Taku highlighted a notable shift in revenue composition, with 73% of revenue in the first nine months of FY25 coming from payments, compared to 70% from financial product distribution in the previous year.

UPI and RuPay Credit Card Initiatives

To capitalize on the booming digital payments market, MobiKwik is aggressively expanding its UPI offerings. The company is focusing on scaling up Pocket UPI and credit card payments on UPI to drive growth. Pocket UPI allows users to make prepaid payments or pay with their wallet on any UPI QR code deployed by banks or payment companies. With MDR (merchant discount rates) attached to these transactions, it offers a potential revenue stream for the company.

“We started scaling up these products in 2024 and are already witnessing strong growth. Pocket UPI and credit card payments on UPI are critical for our growth trajectory,” Taku noted.

MobiKwik’s co-branded RuPay credit card, currently in beta on the MobiKwik app, is expected to be launched publicly soon. “This RuPay credit card will enable us to offer small-ticket credit for everyday spending on UPI, and it is also an MDR-generating product,” Taku said, emphasizing its potential to create a steady revenue stream.

Credit, Savings, and Insurance Expansion

On the lending side, MobiKwik is focused on balancing its credit distribution portfolio by introducing secured products, exploring new commercial models, and partnering with additional lending institutions. The company is scaling down its MobiKwik Zip product due to reduced lending partner appetite for small-ticket credit offerings but remains optimistic about the long-term potential of financial product distribution.

To enhance its offerings in savings and insurance, MobiKwik has made significant investments in Lens.ai, a digital advisory platform. “We are positioning Lens.ai as a digital advisor for the Markets of India, helping users invest via the MobiKwik app into mutual funds, fixed deposits, digital gold, and other financial products we plan to add,” Taku shared. Additionally, the company plans to launch its insurance distribution services later this year.

Strategic Partnerships and Industry Trends

MobiKwik recently partnered with Piramal Finance to offer personal loans, signaling its intent to diversify credit offerings despite scaling back Zip. This shift aligns with broader fintech trends, where companies are moving away from high-risk, small-ticket loans in favor of more stable and quality-focused credit products.

Appalla Saikiran, Founder & CEO of Scope, an invite-only networking platform with a fintech and gaming-focused venture capital fund worth $45 million, commented on the strategic shift. “Scaling down products like Zip highlights a broader fintech trend—moving away from high-risk, small-ticket loans to focus on quality over quantity. Despite losses, MobiKwik’s shares surged post-IPO, indicating investor confidence in fintech’s long-term potential. The market seems to value growth potential and revenue scale over short-term profitability, especially for firms demonstrating strong operational metrics,” Saikiran said.

A Strategic Pivot for Sustainable Growth

Founded in 2009 by Bipin Preet Singh and Upasana Taku, MobiKwik currently serves 172 million registered users and 4.5 million merchants, offering a wide range of payment products such as MobiKwik Wallet, UPI, Pocket UPI, and Zaakpay (payment gateway). The fintech startup has also ventured into distributing credit, savings, investment, and insurance products on its platform.

MobiKwik’s renewed focus on scaling its payments business, diversifying financial products, and launching the RuPay credit card underscores its strategic pivot to secure steady income streams and navigate market challenges. With a strong emphasis on operational efficiency and strategic investments, the company is positioning itself for long-term growth in the competitive fintech landscape.