One Mobikwik Systems Ltd. is adding two new products — Pocket UPI and a new credit card — to its portfolio to drive growth, according to Executive Director Upasana Taku.
Having added 20 million customers in fiscal 2025, the fintech company will continue to prioritise growth in users and merchants, she told NDTV Profit in a conversation on Wednesday.
“This year, we are launching two innovative products aimed at accelerating our UPI growth,” Taku explained. “The first is Pocket UPI, a smarter, more convenient way to make everyday UPI payments.”
“The second is First Card, a RuPay credit card designed for daily UPI transactions. What sets First Card apart is that it’s accessible to every Indian, even those without a CIBIL or bureau score,” Taku added.
When asked if offering credit cards to users without a Cibil score would increase risk, Taku clarified that this would not be the case as the card would be backed by a fixed deposit with a partner bank.
“The card is actually a secured credit card, designed as a step toward financial inclusion. If a customer’s monthly UPI spend is Rs 5,000 to Rs 10,000, they would simply park that amount as a fixed deposit with our partner bank,” she explained.
Based on that deposit, they receive a credit card that can be used across the UPI network. They also earn reward points on their spends, according to the co-founder.
While the company witnessed user growth in Q4FY25, the credit distribution segment faced challenges, which Taku linked to the macroeconomic conditions.
On the impact on overall margins, she said: “We’ve delivered a record high of Rs 1-lakh-crore plus in terms of payments GMV. That’s a first for us.”
“On the credit distribution side, there’s still a little bit of pain in line with the macro environment…. We’ve not been able to demonstrate growth,” she said. “We are confident that in the near future, as the financial services business sees an uptick, we should be able to go back to green.”
Addressing the Rs 121.5-crore loss in FY25, Taku attributed the setback primarily to the last two quarters, noting that the preceding six quarters had been profitable.
“Our payments business continues to operate at a contribution margin of around 20%, and our financial services distribution business runs at about 40% contribution margin…. We’re still a high-growth company,” Taku said.
“So, with slightly lower contribution margins and somewhat higher fixed costs, profitability has been impacted. That said, we’ve historically demonstrated that once our contribution margin crosses 30%, we return to profitability,” she added.
MobiKwik’s current customer acquisition cost remains at Rs 30–35. The company is also investing in AI to optimise collections, operations and to speed up product development.
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