After Facing FIRs For Allegedly Blocking User Funds, MobiKwik Claims 90% Repayment

Days after FIRs were filed against fintech firms MobiKwik and Lendbox for allegedly blocking customer withdrawals on P2P lending platform MobiKwik Xtra, the listed fintech startup has now issued a clarification on the matter. 

In a statement, MobiKwik said that it merely acted as a distribution partner for the P2P lending product offered by Lendbox. The listed company also claimed that customers were informed about the RBI-mandated modifications (in August 2025) in the P2P lending product, adding that users were “aware” of the risks associated with the product.

Citing Lendbox data, the Bipin Preet Singh-led company further claimed that “more than 90% in aggregate has been repaid” by borrowers to the respective lenders. 

“The balance is currently with borrowers and continues to be processed under the recovery and repayment process, and resolution remains our active priority. MobiKwik remains engaged with its regulated partner to support resolution and extends full cooperation to authorities wherever required,” added MobiKwik in a statement. 

This comes days after reports surfaced that Bengaluru Police had registered FIRs against the two companies over alleged cheating of investors and misuse of funds via MobiKwik Xtra. As per The Indian Express, complainants alleged that the firms promised fixed-deposit-like returns and easy withdrawals, but failed to return the invested sums. 

One complaint claimed that his investment of ₹4 Lakh on MobiKwik Xtra remains blocked for withdrawal, adding that the platform had allegedly diverted investor funds in violation of RBI guidelines. Another complaint alleged that ₹91,341 of his ₹3 Lakh investment through the platform remains blocked. 

One complainant further claimed that more than 630 investors across India had collectively invested over ₹6 Cr in the scheme, seeking legal action against the company and freezing of its accounts. 

Launched in 2022, MobiKwik Xtra operates a P2P lending platform, whereby a customer can directly lend to other retail investors. The platform claims to offer returns with low volatility by offering consumers the flexibility to invest funds for shorter durations. 

However, things came to a standstill in mid-2024. Around this time, the RBI began cracking down on P2P lending platforms by issuing new guidelines citing misselling of P2P lending products as an investment product. 

The new norms included restrictions on how P2P lending can be marketed, imposing lending and borrowing caps and fixed platform fees, and banning cross-selling of unrelated products. As a result, many fintech platforms shut down their P2P lending plays, while many others scaled down their offerings. 

The controversy comes at an interesting time for MobiKwik. Last month, the fintech major secured the non-banking financial company (NBFC) licence from the RBI, giving the company more control over product design, distribution and customer experience. 

Meanwhile, on the financial front, MobiKwik reported a consolidated net profit of ₹4.4 Cr in Q4 FY26 as against a loss of ₹56 Cr in the year-ago quarter. Revenue from operations also grew 7.8% to ₹288.7 Cr during the quarter under review from ₹267.8 Cr in Q4 FY25. 

Shares of the company closed yesterday’s trading session 1.9% lower at ₹191.25 on the BSE.

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