Policy · Financial Services

MobiKwik faces FIRs over allegedly blocking investor funds in P2P lending product

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MobiKwik and Lendbox are under investigation for allegedly misusing investor funds in their P2P lending product MobiKwik Xtra

Investors claim they were promised fixed deposit-like returns but faced blocked withdrawals and unauthorised fund diversion

The company claims it acted as a distribution partner and that over 90% of funds have been repaid by borrowers

MobiKwik, a listed fintech startup, faces FIRs (First Information Reports) for allegedly blocking investor funds in its P2P lending product, MobiKwik Xtra.
Investors claim they were promised fixed deposit-like returns but faced blocked withdrawals and unauthorised fund diversion.
The FIRs were filed by investors in Bengaluru, including Arjeet Singh Benchhor and Mayank Dey, who allege that over ₹6 crore has been invested in the scheme.
MobiKwik claims it acted as a distribution partner for Lendbox, which operates the P2P lending product, and that over 90% of funds have been repaid by borrowers.
The company says it is cooperating with authorities and working with Lendbox to resolve customer disputes.

The Reserve Bank of India (RBI) has issued guidelines prohibiting P2P lending platforms from promoting their products as investment options with assured returns.
MobiKwik and Lendbox appear to have violated these guidelines by offering fixed deposit-like returns and easy withdrawals.
The FIRs include allegations of cheating and dishonestly inducing the delivery of property under the IT Act and the Bharatiya Nyaya Sanhita.

MobiKwik is a mobile payments and fintech services company, offering online mobile and DTH recharge, bill payments, and other digital services.
The company operates a P2P lending platform called MobiKwik Xtra, which allows customers to lend directly to other retail investors.
MobiKwik claims to offer returns with low volatility by allowing consumers to invest funds for shorter durations.
The platform faced regulatory scrutiny in mid-2024 when the RBI began cracking down on P2P lending platforms.
MobiKwik recently secured an NBFC (non-banking financial company) licence from the RBI, giving it more control over product design and customer experience.

MobiKwik is working with Lendbox to resolve customer disputes and continues to cooperate with authorities.
The company has secured an NBFC licence from the RBI, which may allow it to expand its lending operations.