Financial Services

News, The Morning Context

MobiKwik can see light at the end of the tunnel

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The worst may be over for MobiKwik. The Gurugram-based fintech company ended the 2024–25 fiscal year with a loss of ₹121 crore, down from a profit of ₹14 crore in the previous year. Higher losses are a result of its risky lending business, which ran into trouble after the Reserve Bank of India’s nudge last year to slow down unsecured lending. The company has pivoted its focus to higher-ticket, longer-term loans. Its payments business remains strong, with non-UPI payments making up 68% of processed payments, up from 37%.

News, The Morning Context

CRED is facing a catch-22 situation

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CRED is facing a catch-22 situation. The platform, founded by Kunal Shah, spent heavily on growth and acquiring affluent users. Despite substantial revenue growth in FY25 (₹1,473 crore), the company is yet to turn a profit. Its main revenue driver is the loans business (about 85% of FY25 revenue), but the growth rate of loan distribution has suffered a downturn. Analysts suggest CRED may not have enough cash left to build another vertical or sustain its current high valuation without significant fundraising.

News, The Morning Context

Is the worst over for Paytm?

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The year after the Reserve Bank of India’s (RBI) action against Paytm Payments Bank started hard for the company, threatening its operational existence. However, Paytm is showing signs of recovery. In the December quarter, its revenue came in at ₹1,901 crore. The company bagged the National Payments Corporation of India’s approval for a Third-Party Application Provider (TPAP) license, marking a key regulatory milestone. CEO Vijay Shekhar Sharma has emphasized compliance.

News, The Morning Context

Post-IPO Mobikwik is walking on a knife’s edge

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It reported losses in Q2 and Q3, its financial services business is reeling and its payments business is growing but earning less. The Gurugram-based fintech needs a turnaround. Since its mid-December initial public offering (IPO), MobiKwik’s shares have fallen by just under 40%. The company’s losses are largely due to its financial services business being severely impacted, despite healthy growth in its payments business. This financial trouble is attributed to sectoral headwinds and a debacle in its P2P lending product with partner Lendbox, which virtually shut down after an RBI circular.

News, The Morning Context

NBFCs’ supply-chain finance offerings face possible RBI restrictions

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An industry letter to the central bank has sought clarification on the regulator’s advice to some NBFCs to cease or modify their supply-chain finance products. The Reserve Bank of India is likely rethinking its stance on supply-chain finance products sold by non-banking financial companies. According to a letter addressed to the RBI by the Finance Industry Development Council, the central bank has advised some NBFCs to stop offering certain supply-chain finance products or modify them.

News, The Morning Context

RBI’s crackdown on P2P lending casts a cloud over MobiKwik’s IPO plans

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As investors in MobiKwik’s P2P lending scheme cry foul over the handling of an RBI rule change, uncertainty looms over the fintech company’s lending business—its strongest growth driver. Many users of a lending scheme offered by MobiKwik are rattled. The Gurugram-headquartered digital payments company, which earlier allowed “anytime withdrawals”, seems to have locked in their investments after the central bank changed a key rule.

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