One Mobikwik Systems Ltd Management Discussions

Macroeconomic Factors

Indias macroeconomic environment is highly positioned to support robust and sustained growth. The economy expanded by 6.5% in real GDP terms during FY 2024-25, with the Reserve Bank of India (RBI) forecasting of a similar 6.5% growth in FY 2025-26. This consistent underscores a strong base for continued domestic consumption. With the GDP projected to reach approximately USD 5.9 trillion by 2028. The country benefits from a young median age of 27.9 years, a growing working-age population, and increasing urbanization, which fuels consumption. Womens participation in the workforce has risen significantly, and strong public and private sector investments, along with supportive government reforms, further drive economic expansion.

India is also witnessing a rapid digital transformation, with its digital economy expected to hit USD 1 trillion by 2030, and the consumer internet economy projected to surpass USD 600 billion by 2028. Mobile and internet penetration is expanding rapidly, with digital payments and fintech sectors playing leading roles in economic inclusion and innovation.

Artificial Intelligence (AI) is emerging as a pivotal driver of Indias macroeconomic trajectory, with industry estimates projecting a cumulative contribution of US $1.2–1.5 trillion to GDP by FY 2029–30. Rapid adoption across BFSI, payments, and SME segments is accelerating productivity, reducing operational costs, and enabling hyper-personalised customer engagement. Government initiatives such as the IndiaAI Mission and investments in AI-ready digital public infrastructure (e.g., UPI, Aadhaar, DigiLocker) are enhancing ecosystem readiness. This macroeconomic momentum translates into larger addressable markets, richer datasets, and the ability to innovate at scale for Fintechs.

These combined factors position India for accelerated economic development and financial inclusion in the coming decade.

Digital Payments Transformation:

Indias digital payment ecosystem is booming, led by Wallet, UPI and BBPS. In June 2025 alone, it handled over H 24.03 lakh crore in payments which was spread across 18.39 billion transactions compared to the same month last year, when there were 13.88 billion transactions, the growth is clear. There is an increase of about 32 per cent in just one year⁽¹⁾, UPI has been constantly at the center of the fintech revolution for transforming how we transact, invest, save and build on the stability of the huge financial ecosystem. Whether it is making payments at a petrol station or shopping through ecommerce merchants or for General Trade. The use cases and the interoperability of the ecosystem is ever growing and MobiKwik has been at the forefront of adopting the trends and simplifying the financial services and payments for Bharat. As Indias leading wallet provider, we believe our Pocket UPI product (a wallet layered on top of the UPI infrastructure) will set us apart going forward. It offers a strong product-market fit, a user-friendly interface, and an alternative to traditional bank-linked UPI, allowing for a clutter-free bank account and robust security. We are confident that Pocket UPI will drive significant adoption and help us capture meaningful market share in the rapidly expanding UPI market. MobiKwiks payments GMV H 1.16 Lakhs Crores, reflecting an exceptional year-on-year growth of 203%. The platforms registered user base reached over 176.40 million in FY 2024-25, compared to 155.84 million in FY 2023-24 and 139.89 million in FY 2022-23. Seamless bill payments: BBPS handles billions of recurring transactions annually and MobiKwik, with a significant number of billers and 4.59 Mn Merchants, was ranked # 06 in Bill Payments by Gross Transaction Value (GTV)of March25.

Distribution of Financial Services in line with Macro Trends

The digital lending market will be growing at a 40% CAGR (2023–2028P)⁽²⁾, driven by increased demand for personal and merchant loans. In FY 2023-24, Personal Lending and delivered record gross margins of 46% in financial services, with MBK ZIP EMI GMV disbursements of H 30,231 million and total digital credit GMV of H 90,934 million. Personal lending trends softened in FY 2024-25 but are expected to rebound in H2 FY 2025-26.

Thus, MobiKwik responded to industry shifts by making a strategic shift from BNPL to higher-ticket ZIP EMI loans, achieving H 53.6 Bn Digital Credit GMV and H 4,028 Mn Financial Services revenue in FY25.

MobiKwik is now focusing more on higher ticket size and quality user base for the lending parts also advancing towards the merchant loans. The platform also saw 13% YoY growth in its merchant base, reaching 4.6 million live merchants which is the part of the strategy to increase the financial services revenue through merchant advance loans and cross sell our products.

1. https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=154912&ModuleId=3

2. Redseer Analysis Report FY23-24 for MobiKwiks IPO prospectus.

3. RBI June 2025 Monetary Policy Update

4. Ministry of Finance

5. Ministry of Electronics & IT

6. EY Report (Dec 2023)

7. IndiaAI Mission (2024)

8. Government & Industry Insights (2025) (NASSCOM & McKinsey AI Adoption Report)

Mobikwiks Total Addressable Market in India

Our Company addresses the bankable middle-India population, as represented below. As per the RedSeer Report, presently, traditional market players usually serve the 20 - 25 million affluent and 90 - 100 million well-off individuals in the country. However, there exists a substantial untapped market of more than 500 million individuals in "middle India population", who are not actively addressed by the traditional market players. Among these, 120-130 million individuals are credit active, presenting a considerable opportunity. Additionally, there are more than 400 million consumers who are not currently engaged in credit activities but require access to financial products. Leveraging payments data and facilitating smaller loans enables us to establish credit histories for these individuals, thereby contributing to increased financial inclusion.

Indias adult population split by credit worthiness

Our Businesses

Our payments business is the foundation stone for our distribution of financial services business. It acts as top of the funnel through which we acquire new users who come on our platform for making daily life payments. Our merchant network further helps in user engagement and helps cross-sell our payment gateway (Zaakpay), Soundboxes and EDC devices. These synergies and the complementary nature of our businesses adds value to our users, merchants and other partners and increases our ability to monetise our user and merchant network without incurring significant additional expenditure. We believe such network effects increase the stickiness and loyalty of both users and merchants, creating an interlinked virtuous cycle.

Our operations are divided into two distinct businesses: (i) Payments; and (ii) Distribution of Financial Services.

Payments Business

Our payments business strategy is to acquire consumers and create a large merchant acceptance network for them so that they can pay conveniently via the MobiKwik Application. Being a two-sided network, our Company empowers consumers and Merchants across the country for daily life payments.

Consumer Side:

The MobiKwik Application provides our Registered Users a simple, fast, safe and reliable way to pay via Wallet. UPI, Pocket UPI, cards and net banking for multiple use cases as illustrated below.

Payment Aggregator / Payment Gateway (Zaakpay)

In addition to the two-sided MobiKwik payment business, we also operate, through our subsidiary Zaakpay, a B2B payment gateway offering for e-commerce businesses

An important component of our payment growth strategy involves the pursuit of scaling our existing payment aggregator business Zaakpay, housed in our Subsidiary, Zaak ePayment Services Private Limited. We have received the approval from the RBI for our Payment Aggregator (PA) business. We are also involved in new product development to offer our Zaakpay consumers a swift and seamless experience to collect payments through all payment modes on their websites, apps and POS.

Distribution of Financial Services Business a. Digital Credit Products

Our Digital Credit Products - ZIP EMI, Merchant Cash Advance (MCA), First Card and risk-free distribution of loans and credit cards provide accessible and affordable credit to middle-India population for all manner of spending.

Personal Loans (DLG Model): ZIP EMI and MCA are interest-bearing, 3 to 24 months tenure and ticket size between H 10,000 to H 200,000 products. The loan amount is credited directly to the consumers/merchants bank account by the lender.

Secured Credit Cards: MobiKwik has partnered with banks for a FD-backed Rupay credit card. This co-branded credit card will cater to individuals with limited or no credit history and help in building a credit score.

The lifetime free card offers a range of benefits including easy application, instant approval, no hidden charges and attractive rewards. The credit card can be used for UPI transactions at all merchant outlets.

Marketplace Model: We have partnered with banks and NBFCs to offer loans and credit cards to our large user base on the risk-free distribution (Non-DLG) model to our 176.40 million Registered user base. It is expected to further strengthen our financial services revenue.

b. Wealth Distribution

Our platform caters to consumers who want to generate returns by deploying funds in simple financial products with low volatility. A large number of these consumers are beginning their investment journey, and not very financially aware and find it challenging to understand the intricacies of volatile products like equities.

Personal Finance Management (Lens): We have utilised the account aggregator technology to provide the consumers with a personal financial management product. With Lens.ai – our AI based chatbot, users can have a conversation regarding their finances. This allows for a detailed comprehension of their financial data – like spending habits, tracking bills and setting financial goals.

Wealth Management:

Stock Broking: MobiKwik has secured approval to launch an equity investment platform

Fixed Deposit: MobiKwik offers its users the option to invest in fixed deposits with RBI-registered NBFCs and banks.

Mutual Funds: We offer advisory services in relation to mutual fund products. Consumers can initiate SIP(s), invest lumpsum amounts, redeem funds, set up a nominee, and download transaction statements, holdings reports, tax-related statements, etc. on their MobiKwik Application.

Digital Gold: Our platform allows consumers to buy and sell gold in smaller denominations, making it accessible to a wider audience, while offering transparency, liquidity, and storage solutions, eliminating the need for physical possession.

Money Tracking Solutions: A stock portfolio management solution built on the AA framework to aggregate demat holdings across brokers in one view. It is an intelligent tracker that helps users monitor investments, analyse portfolio trends, and stay on top of their equity holdings.

Financial Overview

In the FY2025 ended March 31, 2025, we delivered a total income of H 11,924.90 million, Profit/(loss) for the period of H (1,215.29) million and EBITDA of H (793.99) million. Our revenue growth is the result of our payment products, which have led to positive operating margins and have grown in scale, while we have managed to keep our fixed costs (such as employee benefits expenses and business promotion expenses) in check. This growth is primarily an outcome of our focused business strategy as outlined above. Our managements key focus is to build a high growth and profitable business to capitalise on the substantial market opportunity in financial services.

Total Income

Total Income Buildup

Our total income comprising primarily of revenue from payment services and revenue from financial services has grown at a CAGR of 45.78% from Fiscal 2023 to Fiscal 2025. Our total income was 5,611.16 million in Fiscal 2023, 8,903.15 million in Fiscal 2024 and 11,924.90 million as on March 31, 2025.

Payments Services Business

Key factors affecting our payments services business include the following:

A large base of users

We have 176.40 million Registered Users on our platform as of March 31, 2025, as compared to 155.84 million Registered Users as of March 31, 2024. The relatively high proportion of users acquired organically has helped us keep our CAC low compared to industry trends, which amounted to 20.30 per New Registered User in Fiscal 2023, 32.87 per New Registered User in Fiscal 2024, and 34.47 per New Registered User in Fiscal 2025. The increase in CAC over these periods is primarily a result of the acquisition of high quality users on our MobiKwik platform, reflecting our focus on driving existing consumers and users from our payment services business to our financial services business.

Payments GMV and Merchant Fee

GMV on our platform (Platform Spend GMV) is largely driven by our user base, merchant network and brand awareness, subject to seasonal fluctuations. We earn revenue in the form of merchant fees when users pay merchants to buy goods or services. The merchant fee is charged depending upon the category of the merchant.

Financial Services Revenue Drivers

Our financial services business consists of the following two key products: MobiKwik ZIP and ZIP EMI.

ZIP EMI and ZIP

ZIP EMI Gross Merchandise Value (Disbursements)

ZIP EMI GMV (Disbursements) amounted to 24,774.04 million in Fiscal 2025, 30,231.51 million in Fiscal 2024, 10,121.73 million in Fiscal 2023, and 1,636.42 million in Fiscal 2022. There had been strong headwinds across the industry for personal lending in Q4FY25, which has been continuing in Q1FY26; thus, there has been a strategic effort to drive growth in this product. Also, we had shown remarkable growth from FY23 to FY24 for the ZIP EMI.

MobiKwik ZIP Gross Merchandise Value (Disbursements)

MobiKwik ZIP GMV (Disbursements) stood at 28,808.69 million in Fiscal 2025, compared to 60,702.03 million in Fiscal 2024, 41,028.10 million in Fiscal 2023, and 13,485.74 million in Fiscal 2022. The company has paused the ZIP product in Q4 FY2025 due to lower lenders appetite

Digital Credit GMV (Distribution)

(H Bn)

ZIP EMI Revenue Drivers

Revenue from our ZIP EMI product are primarily earned through sourcing and collection fees from our Lending Partners for providing various services to them in connection with the loans disbursed by our Lending Partners, typically as a percentage on the loan amounts disbursed to our consumers. Revenues from ZIP EMI has grown significantly over the last three years in line with the increase in ZIP EMI GMV (Disbursements).

MobiKwik ZIP Revenue Drivers

MobiKwik ZIP is primarily a spend-driven product since it is offered as a credit product that funds purchases of goods/ services by users of our payment services business. Revenue from MobiKwik ZIP is earned primarily through (i) merchant fees earned on the MobiKwik ZIP GMV (Disbursements); (ii) a one-time activation fee for new users; and (iii) late payment fees. Revenue trends for MobiKwik ZIP have broadly mirrored the underlying MobiKwik ZIP GMV (Disbursements).

Key Cost Drivers for our businesses

Key cost drivers in our businesses primarily include the following:

Payment gateway cost – This refers to the costs incurred by us to the payment gateway processors or acquiring banks. Payment gateway costs have broadly moved in line with movement in Payments GMV over the last three Fiscals. During Fiscals 2025 and 2024, the share of transactions from lower revenue generating modes increased significantly, consequently reducing our payment gateway costs in FY25 from FY23 and keeping in line with industry trend and revenue growth increase. Payment gateway costs have remained largely stable as a percentage of payment services revenue.

b. User Incentives Expenses – This includes all our user incentives including cashbacks, discounts and Supercash, our loyalty programme. Our user incentive expenses in Fiscal 2025, Fiscal 2024 and Fiscal 2023 were 621.80 million, 540.03 million and 514.19 million respectively. These expenses have been decreased on QoQ from FY24 to FY25 basis on account of our increased focus in monetizing our existing consumer base (as opposed to increasing new users), leading to streamlining of our promotional strategies and campaigns, which resulted in reduced incentive outlays. Our user incentive expenses as a percentage of total income has come down significantly from 9.16% in Fiscal 2023 to 6.07% in Fiscal 2024 to 5.21% in Fiscal 2025, with strong commitment to decrease the costs and monetize our consumer base.

Unit Economics of Payments Business (bps) (3)

Particulars (in bps)	FY23	FY24	FY25
Payments Revenue (3)	123	83	66
Payments Gateway Costs(3)	(76)	(53)	(48)
User Incentive costs (3)	(25)	(14)	(5)
Net Payments Margin (3)	22	16	13

b. Lending operational expenses –For our ZIP EMI product, lending operational expenses also includes other fees, such as facilitation fee and technology fees for our usage of our Lending Partners platforms to disburse loans to our consumers.

c. Financial Guarantee Expenses: Financial guarantee expenses are credit expenses borne under the credit portfolios created for our Lending Partners prior to the change in the regime for digital lending through the Digital Lending Guidelines in Fiscal 2023. During the course of Fiscal 2023, the RBI disallowed lending service providers from providing financial guarantees to Lending Partners. Accordingly, we stopped providing any new financial guarantees. As a result, financial guarantee expenses decreased thereafter in Fiscal 2023 since they pertained to older and pre-existing loan portfolios which were decreasing with time and repayments. With the RBI now allowing the provision of DLGs of upto 5% through the DLG Guidelines, we expect financial guarantee expenses to continue to be a part of our financial statements.

Digital Credit GMV (Distribution) (H Mn)

Lending Related Exp (%) ⁽¹⁾

Margin Profile

In the last three Fiscals both our Gross Margin – Payment Services (%) and Gross Margin – Financial Services (%) have improved significantly. While payment gateway cost and user incentives have decreased or sustained at similar levels, lending operational expenses and financial guarantee expenses have reduced (as % of revenue from financial services). This has resulted in growth of Overall Contribution Margin at the consolidated level.

Payment Services Gross Margin

Our Gross Margin – Payments Services (%) Increased from 18.23% in Fiscal 2023 to 19.36% in Fiscal 2024 to 19.70% in Fiscal 2025. Our Gross Margin – Payments Services have in Fiscal 2024, Fiscal 2025 primarily due to increased incidence of higher margin payment use cases.

Revenue from Payments (H Mn) & Gross Margin (%) Gross Margin ⁽²⁾ (%)

Financial Services Gross Margin

FY25

Our Gross Margin - Financial Services (%) has improved significantly from 37.51% in Fiscal 2023 to 45.70% in Fiscal 2024 to 46.70% in Fiscal 2025, as disbursements from our Lending Partners have scaled.

In Fiscal 2025, 41.07% drop in disbursements led to only 27.8% revenue decline, signaling better unit economics

Revenue take rate up to 7.52% (vs. 6.14% in FY24)

Key partners: Poonawalla Fincorp, ABFL, Piramal, SMFG, Northern Arc, Suryoday SFB

Revenue from Financial Services (H Mn) & Gross Margin (%) Financial Services GM (%) ⁽³⁾

Our Contribution Margin for the last three Fiscals are as follows.

Our Contribution Margin is computed as Total Income less Direct Cost (Payments Gateway Expenses, User Incentives, and Lending Related Expenses) is set forth below.

Contribution Margin (H Mn) and CM (%) Contribution Margin (CM) ⁽⁴⁾ (%)

Fixed Costs

Our fixed costs primarily comprise of employee benefits expense, which we have been able to keep in check while scaling revenues. This is displayed below as employee benefits expense as a percentage of total income was 17.51% in Fiscal 2023, 13.03% in Fiscal 2024, 14.28% in Fiscal 2025 and The employee benefits expense during Fiscals 2023, 2024, 2025 was H 982.25 million, H 1,159.74 million, and H 1,702.35 million, respectively.

Fixed cost as a % of total income has also been controlled and reduced significantly from 41.14% in FY2023 to 33.07% in FY2024 to 36.98% in FY25.

Fixed Cost (H Mn) & Fixed Cost (%)

Our EBITDA margin as % of total income has increased from (9.97%) in Fiscal 2023 to 4.18% in Fiscal 2024 & (6.66%) in Fiscal 2025. Our EBITDA was (559.20) million in Fiscal 2023, 372.20 million in Fiscal 2024 and ( 793.30) in Fiscal 2025.

Profit/ (Loss) After Tax for the year/ period (PAT)

During Fiscal 2025, we achieved Profit /(Loss) for the year amounting to (1,215 .29) million. Our Profit /(loss) margin for the year as a percent of total income has improved from (14.94%) in Fiscal 2023 to 1.58 % in Fiscal 2024 and (10.19%) in Fiscal 2025 . Our loss margin in Fiscal 2025 was primarily on account of lower Contribution Margin due to decrease from financial services segment due to sectoral headwinds and regulatory changes in personal lending.

Business Outlook: Payments:

Pocket UPI offers an enhanced approach to UPI, combining the extensive wallet network of MobiKwik with the vast merchant network of UPI. It features industry-leading capabilities such as UPI transactions without linking a bank account, PIN-less instant payments, and uninterrupted functionality even during bank outages, making it well-suited for wider user adoption.

Industry is in consultation with the regulatory bodies for the introduction of interchange fee on PPI which was first proposed in 2023 and there is likelihood of interchange fee on PPI transactions being implemented on wallet, this would prove to be beneficial for the payments business. We have delivered continuous growth in the payment GMV, and the target is to significantly increase adoption of Pocket UPI and driving margins through it. We have also a constantly delivered industry leading Net payments margin of 13 Bps in FY24-25 and 16 Bps in FY23-24. There has been constant improvement in quarter wise numbers also thus proving our commitments to drive strong business growth.

Key Financial Ratios

Ratios	Formula	FY23	FY24	FY25
Debtors Turnover	Revenue from operations/Average	9.39	11.08	17.09
(Trade Receivables turnover ratio)	trade receivables
Current Ratio	Current assets/ Current liabilities	0.96	1.03	1.53
Debt Equity Ratio	(Non current borrowings+Current	1.29	1.39	0.51
	borrowings)/Total equity
Net Profit Margin (%) (Net profit ratio)	Profit(Loss) for the year/Revenue	(0.16)	0.01	(0.11)
	from operations
Return on Equity Ratio	Profit(Loss) for the year/Total equity	(0.50)	0.05	(0.20)
Interest Coverage Ratio	EBIT/Interest Expense	(2.96)	1.40	(2.87)
Operating Profit Margin (%) (EBIT Margin)	EBIT/Sales	(0.12)	0.04	(0.08)

Notes

Average Trade receivables = (Opening trade receivables + Closing trade receivables)/2 Average Trade payables = (Opening trade payables + Closing trade payables)/2 EBIT = Profit(Losses)/Earnings Before Interest and Taxes Capital employed = Total Equity + Borrowings (Non-current and Current)

Internal Control Systems and Risk Management	Board Committees:
Framework	1. Audit Committee
At MobiKwik, trust and speed form the core values guiding our	2. Nomination & Remuneration Committee
operations. We consider all stakeholders as an integral part of
	3. Stakeholders Relationship Committee
the MobiKwik family, and their security is our highest priority.
To this end, we have established a dynamic and robust risk	4. Risk Management Committee
management framework, supported by strong internal control
	5. Securities Allotment Committee
systems, to address the evolving nature of our business and
the corresponding changes in our risk profile.	6. Treasury Committee
	7. IPO Committee
We have therefore adopted a broad and exclusive risk
management framework with the following committees:	8. CSR Committee

Financial Services:

Our aim remains to work towards increasing loan disbursement through our platform through ZIP EMI product. We aim to leverage our existing and growing customer and merchant base to offer financial services products to both these categories users through distribution of secure (risk free distribution) and unsecured loans (DLG Model), product and additionally the launch of the SBM will surely help increase the financial services business. We are also in the process of scaling the Merchant Cash Advance business (merchant lending) to keep balance with the industry trends. The strong merchant base of 4.6 Mn merchants will aid and contribute to the overall income. The financial services take rate is also having green shoots of growth thus depicting the trajectory of higher margins for the segment.

We are also focusing on the AI initiatives for driving profitability in business with the following initiatives:

AI Assisted Product Development- improving code quality, testing time, automating repetitive tasks.

Driving Customer Delight: Use AI insights to boost agent productivity, monitor performance and train effectively.

Risk Management:

Framework for identification of internal and external risks: The risks specifically faced by the listed entities, including financial, operational, sectoral, sustainability (particularly environmental, social and governance related risks), information, cyber security risks or any other risk as may be determined by the Risk Management Committee; Measures for risk mitigation including systems and processes for internal control of identified risks; and Business continuity plan.

Anti-money laundering and Counter-terrorism Financing Risk Management: MobiKwik and its partners, especially in the domain of digital payments and financial services are required to comply with applicable guidelines pertaining to AMLand counter-terrorism financing, economic sanction laws and regulations that prohibit, among other things, any involvement in transferring the proceeds arising out or towards criminal activities. These applicable regulations require us and our partners to establish robust internal control policies and procedures with respect to these requirements

Business and Operational Risks:

Financial:

Our management monitors and manages key financial risk relating to the operations of our Company by analyzing exposures by degree and magnitude of risk. The risks include market risk (including interest rate risk, currency risk and other price risk), credit risk and liquidity risk.

Our Board of Directors has overall responsibility for the establishment and oversight of our risk management framework. Our risk management policies are established to identify and analyse the risks faced by us, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and our activities.

Macro-Economic Environment

We remain vigilant and responsive to macro-economic developments that may influence our customers and merchants and in turn also our business operations. In such situations, we work towards creating safeguards and appropriate and proactive measures within our control to mitigate the impact.

Technological and Cybersecurity Risk:

Our technology stack has been meticulously developed inhouse leveraging new age technology frameworks and distributed architecture which are built from the ground up, seamlessly integrated across all facets of our ecosystem. By independently developing constructing and innovating at every layer of the technology stack, we can swiftly launch products and services, incorporate various product features, provide integrated and synergistic offerings, manage large-scale operations, and achieve high success rates and ensure high system availability or uptime stability. This combination of robust technology platforms and multiple product features significantly enhances the overall experience for both consumers and merchants within our ecosystem. We conduct vulnerability assessment and penetration testing and system audits periodically. Although we have developed systems and processes that are designed to protect data, prevent data loss and other security breaches, and have obtained a RBIs PSDSS, PCI DSS, ISO/IEC 27001:2022, and conduct regular IS audits. Our data is encrypted at rest and in transit, stored in SOC 2 compliant centers with strict access controls and anonymization. We maintain strong application and network security through regular VAPT, firewalls, WAFs, and protection against mobile threats. Real-time replication, disaster recovery, and audit-controlled access ensure continuity and strengthened security undergo various security and compliance audits, including the Payment System Data Storage – System Audit and the Information System Audit as under the RBI-PPI Master Directions, we will need to continue to invest significant resources to further strengthen these security measures and any delay in upgrading our systems or any disruption, breach or failure in our technology infrastructure concerning the same, may have significant consequences on our business operations.

Regulatory Risk: As part of our regulatory compliance, we are required to keep abreast of all regulatory requirements and changes that apply to our businesses. As part of the regulatory requirements, we are also required to maintain a minimum net-worth for our PPI, BBPOU and now our PA licenses and as we apply for more licenses we will be required to maintain adequate net worth as part of the required regulatory requirements.

To ensure business continuity and to avoid regulatory action, the compliance function of the Company has created internal frameworks and built internal processes that regularly monitor the regulatory requirements of each license. These have been implemented to ensure that business operations are not impacted and there is no adverse impact on our business, prospects, results of operations and financial condition.

Competition: We compete for consumers based on factors, such as, the value and consumer experience we offer as well as the security of our MobiKwik platform and our suite of product offerings. We compete for merchants based on factors, such as, scale and engagement of consumers on our platform, cost, convenience, quality and the innovative nature of our products and services. We also compete for motivated and capable talents, including technology and financial services talents. Technological advances and the continued growth of ecommerce activities have increased consumers accessibility to products and services and led to the expansion of competition in digital payment options, such as, pay-over-time solutions and lending products.

Litigation: We have established internal capabilities to effectively handle legal risks and, when needed, collaborate with external advisors to minimize any significant consequences. Like many businesses, our company and senior management may occasionally face legal challenges, including active cases involving taxation, civil disputes, or other legal areas.

Material Developments in Human Resources:

As on March 31, 2025, the Companys on-roll headcount stood at 663 employees, with a functional distribution of Sales (170), Operations (174), Technology (238), and Corporate (81). This distribution reflects the Companys emphasis on strengthening technology and operational excellence while ensuring adequate support for sales and corporate functions.

In addition to the on-roll workforce, the Company had 1,150 off-roll employees, entirely engaged in sales-related activities and included as part of the Sales team headcount. This approach provides flexibility in workforce deployment and enables scalability in line with business requirements.

Employee costs, excluding ESOP-related expenses, accounted for 12.4% of Total Revenue in FY24 and 13.3% in FY25. The increase reflects the Companys continued investments in human capital, focusing on talent acquisition, retention, and capability building to support its long-term growth strategy.