Mobikwik confirms technical failure on the app; Fintech companies lose Rs 400 crore through UPI, the key thing to know
Through a stock market filing on Thursday, September 19, fintech platform Mobikwik confirmed a technical failure on its app, which caused the company to lose Rs 4 billion.
“Mobikwik confirmed that an isolated technical issue on September 11 and September 12, 2025 resulted in certain failed transactions being mislabeled as successful, resulting in unauthorized spending on certain merchants in and around Haryana NUH District. The company’s incurred insufficient financial gains to acquire several merchants in the area and earned the company’s proceeds.”
After the certification was carried out in the early hours of September 12, the company immediately took corrective measures and resolved the issue within 45 minutes. Total financial impact has been included and quantified. FIR has been filed with local authorities, arrested and frozen bank accounts of more than 2,000 merchants. Active recovery work is underway and some funds have been recovered.
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The company also confirmed that this event will not affect any UPI or wallet payments or user account balances. Likewise, no legal user or merchant suffers any financial loss and does not harm customer data or credentials. This is not a network security vulnerability, but limited internal processing errors that are completely resolved now. Since this is an internal problem, no banks or financial institutions are affected.
Key factors related to the case
According to the Gururam Police Department, an illegal transaction worth Rs 4 billion has occurred in the past two days. There are 2,500 bank accounts and six defendants are involved. Nearly 500,000 transactions were made.
However, all defendants identified as Rehan, Mohammad Sakil, Wakar Yunus, Wasim Akram, Mohammad Amir and Mohammad Ansar were arrested from Gurugram on Monday, September 15.
Meanwhile, a Mobikwik system stock trading at Rs 295.8 per share, down 2.02%, from 11.54 am on September 19.
Also read: Mobikwik shares price 11% after Adia sells 2.1% of Rs 390 crore shares
