MobiKwik Eyes NBFC License, Invests Rs 10 Crore in Financial Services Subsidiary

One Mobikwik Systems, a leading fintech company, is considering applying for a Non-Banking Financial Company (NBFC) license from the Reserve Bank of India (RBI). This move comes after the company invested Rs 9.99 crore in its subsidiary, Mobikwik Financial Services Pvt, in October.

Strategic Investment and License Application

MobiKwik co-founder Upasana Taku revealed that the company has incorporated the subsidiary with the minimum required capital and may file for the NBFC license. The proposed NBFC aims to operate in leasing and hire purchase deals for various assets, including:

• Machinery
• Equipment
• Vehicles
• Real estate

Business Model Clarification

MobiKwik emphasized that it does not intend to become a direct lender. Instead, the company aims to:

1. Better understand its users
2. Facilitate matchmaking with lending partners

This approach aligns with MobiKwik's strategy to enhance its financial services offerings while maintaining its core business model.

Financial Performance

MobiKwik's recent financial results reveal some challenges:

The company attributed the decline in financial services revenue to:

• Industry moderation in unsecured lending
• Strategic shift away from buy-now-pay-later products
• New accounting treatments

Future Outlook

Despite the current challenges, MobiKwik remains optimistic about its future performance. The company expects to achieve EBITDA breakeven in the second half of fiscal 2026.

As MobiKwik navigates the evolving fintech landscape, its potential entry into the NBFC space could open new avenues for growth and diversification. However, the company will need to address the recent revenue challenges and capitalize on the growth in its payments business to achieve its financial goals.