MobiKwik sets up wholly-owned NBFC subsidiary

In a strategic move to expand its footprint in the financial services sector, MobiKwik has announced the incorporation of its wholly owned subsidiary, Mobikwik Financial Services Private Limited (MFSPL).

The main purpose of MFSPL is to operate as a Non-Banking Financial Company (NBFC). It will offer financial services such as loans, leasing, and hire purchase for a wide range of assets, including machinery, equipment, vehicles, ships, aircraft, and both movable and immovable property.

In a stock exchange filing, MobiKwik said it will enable the company to diversify and deepen its offerings beyond its existing digital payment services.

The entity has yet to commence operations, with turnover currently marked as nil.

MobiKwik recently partnered with Poonawalla Fincorp to offer instant personal loans through its ZIP EMI product. Last month, the Gurugram-based company forayed into the securities broking space with the launch of its wholly owned subsidiary, Mobikwik Securities Broking Private Limited (MSBPL).

MobiKwik’s registered user base has grown to 172 million, along with a merchant network of 5 million, the company said in Q3 FY25. In the third quarter of the previous fiscal year, it reported a revenue of Rs 269 crore and a loss of Rs 55.2 crore.

At market close on Wednesday, MobiKwik’s shares were trading at nearly Rs 280 apiece.