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MobiKwik gets RBI nod to launch NBFC arm for lending expansion

One MobiKwik Systems has received approval from the Reserve Bank of India for its Non-Banking Financial Company (NBFC) licence, marking a significant step in its evolution into a full-stack financial services provider. The development enables the Gurugram-based fintech firm to establish its own lending operations, subject to final regulatory clearances.

The company confirmed that it will roll out its lending business through its wholly owned subsidiary, MobiKwik Financial Services Private Limited (MFSPL). However, the lending operations will begin only after the issuance of the Certificate of Registration and compliance with all regulatory requirements.

Strengthening Lending Capabilities

With the NBFC licence, MobiKwik will be able to originate and underwrite loans independently, moving away from its earlier model of relying on third-party lending partners. This transition is expected to improve operational efficiency, enhance profit margins, and provide greater control over credit risk assessment and underwriting processes.

The company plans to offer a mix of secured and unsecured loan products targeting both individual consumers and micro, small, and medium enterprises (MSMEs). A key focus area will be expanding access to credit in Tier II and Tier III cities, where financial inclusion remains limited.

Leveraging its technology infrastructure, including artificial intelligence and machine learning capabilities, MobiKwik aims to deliver personalised financial products tailored to user behaviour and credit profiles. The company currently serves a user base of over 186 million, which it intends to tap for scaling its lending business.

Market Impact and Industry Positioning

The move places MobiKwik among a growing list of fintech firms in India that have secured NBFC licences, allowing them to operate as regulated lenders with greater autonomy. This shift is expected to intensify competition in the digital lending space while enabling companies to innovate more rapidly.

Following the announcement, MobiKwik’s shares saw a sharp rise, reflecting positive market sentiment around its expansion into direct lending. Analysts view the NBFC licence as a strategic milestone that could strengthen the company’s position in India’s evolving fintech landscape.

As digital financial services continue to expand, MobiKwik’s entry into lending is likely to play a key role in its long-term growth strategy, particularly in addressing the credit needs of underserved segments across the country.