MobiKwik merchant GMV rises 76% to 22% platform share

MobiKwik merchant payments gross merchandise value (GMV) grew 76% year-on-year to Rs 13,300 crore in Q2 FY27, reaching 22% of Rs 59,700 crore in platform spend GMV, versus 17% a year earlier. The segment outgrew consumer payments, whose GMV rose 27% to Rs 46,400 crore, while total payments net margin held at 13 basis points.

How fast did MobiKwik merchant payments grow in Q2 FY27?

MobiKwik merchant payments GMV rose 76% year-on-year and 18% quarter-on-quarter to Rs 13,300 crore in Q2 FY27. This compares with Rs 7,500 crore in Q2 FY26 and Rs 11,300 crore in Q1 FY27, making merchant payments the faster-growing payments segment in the reported quarter.

Merchant payments revenue increased 150% year-on-year and 29% quarter-on-quarter, ahead of GMV growth in both comparisons. MobiKwik reported a net merchant payments margin of 3.4 basis points in Q2 FY27, up 1 basis point from Q1 FY27; one basis point equals one-hundredth of a percentage point.

Merchant payments added Rs 2,000 crore of GMV from Q1 FY27, while consumer payments declined by Rs 1,000 crore sequentially. Platform spend GMV, defined as consumer payments GMV plus merchant payments GMV, still rose Rs 1,000 crore quarter-on-quarter, reflecting the increase in merchant acquiring and Zaakpay activity.

Why did MobiKwik merchant payments reach 22% of platform GMV?

MobiKwik merchant payments accounted for 22% of platform spend GMV in Q2 FY27, up from 17% in Q2 FY26, because its 76% year-on-year GMV growth exceeded the 27% increase in consumer payments. Platform spend GMV grew 35% year-on-year to Rs 59,700 crore during the same period.

Merchant GMV increased by Rs 5,800 crore year-on-year, from Rs 7,500 crore to Rs 13,300 crore, while consumer GMV increased by Rs 9,800 crore to Rs 46,400 crore. Consumer payments therefore remained about three-and-a-half times the size of merchant payments, but merchant payments made up a larger share of the increase in platform spend.

MobiKwik reported platform gross margin of 38.2% in Q2 FY27, compared with 37.3% in Q1 FY27 and 29.4% in Q2 FY26. The presentation does not split this gross margin between consumer and merchant payments, so the 90-basis-point sequential increase cannot be attributed solely to merchant payments or Zaakpay.

What products generate MobiKwik merchant payments revenue?

MobiKwik generates merchant payments revenue through offline merchant acquiring and Zaakpay, its online payment aggregator business. Offline products include static and dynamic quick-response (QR) codes, Sound Box payment alerts, and electronic data capture (EDC) terminals for card, Unified Payments Interface (UPI) and wallet acceptance.

For QR-based acceptance, MobiKwik identifies merchant discount rate (MDR) income from wallet and RuPay Credit Card transactions, as well as proposed MDR on UPI. EDC terminals generate MDR on card and wallet transactions and device rental, with products positioned for organised and enterprise merchants, oil and gas outlets, and general trade.

Zaakpay provides checkout services across cards, UPI, net banking and wallets for enterprises and small and medium-sized businesses. MobiKwik says Zaakpay earns MDR on transactions and value-added services; merchant payments GMV includes Payment Aggregator Physical and Payment Aggregator Online, or Zaakpay.

MobiKwik also states that certain non-payment-aggregator merchant transactions included in Q1 FY27 have been excluded across quarters. That treatment affects comparability of the merchant GMV series, including the Rs 11,300 crore reported for Q1 FY27 and Rs 13,300 crore reported for Q2 FY27.

How did consumer payments compare with MobiKwik merchant payments?

MobiKwik consumer payments GMV grew 27% year-on-year to Rs 46,400 crore in Q2 FY27, but was below Rs 47,400 crore in Q1 FY27. Its 16.2-basis-point net consumer payments margin was 0.4 basis point higher than in the preceding quarter, compared with the 3.4-basis-point merchant payments margin.

UPI generated Rs 24,700 crore of consumer GMV, up 42% year-on-year, on 21 crore transactions, up 52%. MobiKwik describes UPI as an acquisition rail that can be cross-sold into wallet, bill payments and credit, while identifying potential UPI MDR as a possible future revenue source.

Wallet GMV was Rs 12,400 crore, up 20% year-on-year, with wallet transactions rising 43% to 10.9 crore. Recharge and bill payments generated Rs 9,360 crore of GMV, up 21%, comprising Rs 5,960 crore of business-to-consumer GMV and Rs 3,400 crore of business-to-business GMV across more than 22,000 billers.

Consumer payment categories grew between 20% and 42% by GMV, below the 76% merchant payments growth rate. MobiKwik also reported consumer payments gross profit growth of 26% year-on-year, close to the segment's 27% GMV increase.

Are MobiKwik payment margins within its guidance?

MobiKwik's net payments margin was 13 basis points in Q2 FY27, within management's stated guidance range of 12 to 15 basis points. This measure covers platform spend GMV, which the company defines for payments unit economics as MobiKwik payment GMV plus Zaakpay GMV.

Payments revenue declined from 47 basis points in Q2 FY26 to 35 basis points in Q2 FY27, while gateway costs fell from 30 basis points to 20 basis points and user incentive costs moved from 3 basis points to 2 basis points. The result was a 13-basis-point net margin, compared with 14 basis points a year earlier and 13 basis points in Q1 FY27.

Management expects consistent GMV growth with stable net payments margin, according to the presentation. It also cites potential UPI MDR as a possible source of further upside, without disclosing a timing or certainty for such MDR.

Conclusion

MobiKwik's Q2 FY27 data show merchant payments taking a larger role in platform activity: merchant GMV reached Rs 13,300 crore, grew 76% year-on-year and represented 22% of Rs 59,700 crore in platform spend GMV. Consumer payments remained the larger business at Rs 46,400 crore and generated the higher disclosed segment margin, while overall payments net margin remained 13 basis points.

The next measure to watch is whether MobiKwik sustains merchant GMV growth while total payments net margin stays within management's 12-to-15-basis-point guidance range. Management expects consistent GMV growth and stable margin, while potential UPI MDR remains an unresolved possible contributor to revenue.