One MobiKwik Systems Ltd. (MobiKwik) has received approval from the Reserve Bank of India (RBI) for its Non-Banking Financial Company (NBFC) application, marking a significant step in its expansion of financial services. The approval will enable MobiKwik to launch MobiKwik Financial Services Private Limited (MFSPL), a wholly owned subsidiary, aimed at expanding its lending capabilities and introducing innovative credit products.
The NBFC license will allow MobiKwik to leverage its extensive customer base of over 186 million users, enhancing its ability to offer both secured and unsecured credit products to consumers and MSMEs, particularly in underserved regions. The company plans to use this opportunity to strengthen its fintech platform, focusing on accessible and responsible financial products.
MobiKwik’s in-house NBFC will facilitate faster go-to-market strategies for new products and provide access to sustainable capital through a co-lending model, which is expected to improve lending margins for the group. The operations of the NBFC will commence upon receipt of the Certificate of Registration (COR) from the RBI, contingent on fulfilling certain conditions.
Upasana Taku, Executive Director, Co-founder, and CFO of MobiKwik, expressed satisfaction with the approval, highlighting it as a pivotal step in the company’s evolution into a comprehensive financial services platform. Taku noted the swift approval process, completed in under four months, as an endorsement of the group’s credibility and commitment to strong governance and risk discipline.
The NBFC framework will enable MobiKwik to utilise its technological capabilities, including AI-ML models, to deliver personalised financial products tailored to diverse consumer needs. While the primary focus will be on Tier 2 and Tier 3 cities, the company aims to extend its services nationwide, promoting financial inclusion in underpenetrated areas and enhancing access to credit.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).