MobiKwik Turns A Corner, Zupee’s Microdrama Pivot & More

MobiKwik Hits Profit Mark

MobiKwik turned a corner in Q3 FY26. The fintech platform swung to profitability during the quarter on the back of record payments GMV, a tight leash on expenses and improving margins. The numbers came despite the company’s dipping financial services revenues.

Here is a snapshot of the Q3 numbers:

• Net profit stood at INR 4 Cr against a loss of INR 55.3 Cr in the year-ago quarter
• Operating revenue rose 7.2% YoY to INR 288.9 Cr
• EBITDA improved to INR 15 Cr compared to an EBITDA loss of INR 42.7 Cr in Q3 FY25
• Expenses declined 11% YoY to INR 282.2 Cr
• Payments vertical’s revenue rose 13.8% YoY to INR 223.7 Cr, while gross profit rose 35.7% to INR 83.3 Cr
• Financial services’ top line declined 10.6% YoY to INR 65.2 Cr on a gross profit of INR 37.2 Cr, up 405% YoY 

Payments Powerhouse: MobiKwik’s payments engine continued to do the heavy lifting in Q3. The company claimed that it managed to convert the surge in UPI activity to higher net margins despite a decrease in the overall take rate. The firm’s strong foothold in the digital wallet category also provided a stable foundation as registered users and merchants continued to grow. 

The Lending Reset: Despite a decline in top line, MobiKwik’s financial services vertical’s profitability improved as direct costs fell and collections strengthened. The startup now plans to prioritise portfolio quality and operating discipline while diversifying across wealth, broking, and additional credit products.

Tricky Road Ahead: The path forward presents structural challenges for MobiKwik. While UPI’s surging share of payments GMV drives user acquisition, the dominance also compresses take rates. On similar lines, the company’s financial services seem to be sacrificing revenue to build loan portfolio quality. As it juggles the twin pressures, here is how MobiKwik fared on the financial front in Q3. 

From The Editor’s Desk

Zupee Acquires Vertical TV

• The erstwhile RMG startup has acquired the Mumbai-based microdrama platform for under INR 40 Cr to bolster its newly launched short-video platform Zupee Studio.
• The deal will enable Zupee to gain a consistent content supply of creators, acquire production workflows, create a new revenue engine and skip building a content platform from scratch.
• The transaction comes as Zupee grapples with the fallout of the Centre’s ban on real-money gaming last year. As the beleaguered startup looks for a new revenue stream, it has laid off more than 370 employees in the past four months to extend its runway. 

Juleo Shuts Shop

• The online matchmaking startup has shut down after failing to raise additional capital, with cofounder Varun Sud saying institutional investors didn’t buy into the startup’s vision due to the category’s past baggage.
• Founded in 2023, Juleo initially operated a subscription-based matchmaking model. It later added offline community events, trying to differentiate from swipe-first apps with paid matchmaking. It raised $2.5 Mn in its lifetime.
• Juleo’s shutdown fits a wider ecosystem pattern. As many as 25 startups shut down last year against 12 in 2024. The year so far has already seen house help startup Pync wrap up operations due to raging competition in the space.

Fractal All Set For D-Street Debut

• The SaaS major has filed its RHP with SEBI for an IPO, which will comprise a fresh issue of shares worth INR 1,023.54 Cr and an OFS component of INR 1,810.4 Cr. The public issue will now open on February 9 and close on February 11.
• As part of the OFS, backer Apax will sell the biggest chunk of shares worth INR 880 Cr, while TPG Capital, Satya Kumari Remala, Rao Venkateswara Remala and GLM Family Trust will also offload stakes. 
• On the financial front, Fractal’s profits declined 3% YoY to INR 70.9 Cr in H1 FY26, while operating revenue rose 20% YoY to INR 1,559 Cr.

Exits Continue At Peak XV 

• The venture capital firm has parted ways with three managing directors — Ashish Agrawal, Ishaan Mittal and Tejeshwi Sharma. The trio left the VC giant to start their own investment firm. 
• In response to the exits, Peak XV announced internal leadership changes, promoting Abhishek Mohan to general partner and elevating Saipriya Sarangan to COO. 
• Top-level exits at big-ticket VC firms can affect continuity on boards, decision-making and active founder relationships. Nevertheless, the trio joins a growing band of VC executives jumping ship to start their own ventures.

Nazara Back In The Black In Q3

• The gaming major clocked a profit of INR 8.8 Cr in Q3 FY26, down 36% YoY. However, on a sequential basis, the company swung back to the black compared to a loss of INR 33.9 Cr in Q2. 
• The profitable numbers were offset by a sharp 25% YoY fall in operating revenues to INR 406 Cr. The company attributed the decline to the non-inclusion of NODWIN’s revenue in the consolidated financials. 
• Meanwhile, Nazara’s board also granted an in-principle nod to its Dubai-based subsidiary to invest $500K in nCore Games. It also approved a capital infusion of up to INR 15 Cr into digital content development studio Rusk Media.

Inc42 Markets

Inc42 Startup Spotlight

Can Flash Ride India’s Agentic Commerce Wave?

Shopping online can be tiresome. Scrolling forums, second-guessing five-star reviews and comparing endless product pages can be time-consuming and frustrating. Flash AI is betting that its AI agents can compress this pre-purchase grind into a fast, personalised decision. 

Shoppers’ Paradise: Founded in 2022, Flash AI offers an AI-powered shopping assistant that provides instant insights to help consumers make informed decisions. The startup aggregates data from various channels to generate a concise summary of a product’s pros and cons, along with real-time prices across stores.

Growing Scale: The startup claims that more than 7.5 Lakh customers use its platform to research 20 Lakh products monthly, with strong traction in beauty and personal care and electronics. 

The Monetisation Puzzle: However, the startup’s monetisation comes with a trade-off as it earns revenues primarily via brand partnerships and affiliate links. Going forward, Flash plans to offer brands with granular competitive intelligence, while staying “unbiased” to address the trust challenge.

As the agentic commerce race heats up, can Flash AI become the recommendation engine of choice for India’s online shoppers?

Infographic Of The Day

India isn’t chasing AI. It’s building a full-stack ecosystem — from compute to applications — shaped by local use cases, policy clarity, and long-term ambition. 

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