MobiKwik forms wholly-owned NBFC unit to revive lending amid partner pullback
While MobiKwik already operates wallet and BNPL services, the new subsidiary could enable it to issue credit more directly and at scale.
One MobiKwik Systems Ltd has incorporated a wholly owned subsidiary—Mobikwik Financial Services Private Limited (MFSPL)—as part of its strategic venture into the NBFC (non-banking financial company) space.
The company disclosed this in a filing to stock exchanges on April 23.
The Gurugram-based fintech firm said the new entity has been approved by the Ministry of Corporate Affairs and will be engaged in a range of financial services under the NBFC framework, including leasing, hire purchase, and financing of machinery, vehicles, property, and other assets.
According to the disclosure, MFSPL falls under 'related party transactions' as a wholly owned subsidiary. The consideration for the acquisition is entirely in cash, and MobiKwik will hold 100% ownership in the entity.
The move signals MobiKwik’s intent to deepen its footprint in the credit and lending ecosystem, a segment many Indian fintech firms have targeted amid rising demand for digital loans. While MobiKwik already operates wallet and BNPL (buy now, pay later) services, the new subsidiary could enable it to issue credit more directly and at scale.
Historically, MobiKwik operated as a technology service provider, which meant it could not lend directly from its own balance sheet due to regulatory restrictions. Instead, it partnered with licensed NBFCs to originate loans, effectively acting as a digital intermediary that matched borrowers with lenders. While this allowed MobiKwik to build a consumer credit portfolio through tie-ups, it limited its control over credit decisioning, margins, and scalability.
In Q3 of FY25, Mobikwik saw small, unsecured personal loan disbursals plunge to Rs 300 crore from Rs 1,000 crore a quarter ago. Its revenue from EMI-based loan product was also down from Rs 700 crore to Rs 400 crore during the same period. This was due to NBFC partners pulling away from small-ticket unsecured loans amid a tough regulatory and economic environment.
Having its own NBFC licence means MobiKwik no longer needs to depend on external lending partners to originate and service loans.
Edited by Swetha Kannan