Fintech major MobiKwik has received approval from the Reserve Bank of India for its Non-Banking Financial Company (NBFC) application, marking a significant milestone in its evolution into a full-stack financial services platform.
Key Highlights
- MobiKwik secures RBI NBFC approval, enabling direct lending, boosting margins, and strengthening control over credit operations.
- Fintech firm targets Tier II and III markets with AI-driven credit products, advancing financial inclusion nationwide.
According to the company’s regulatory filing, the approval paves the way for launching its in-house lending business through its wholly owned subsidiary, MobiKwik Financial Services Private Limited (MFSPL). However, the lending operations will commence only after the company secures the final Certificate of Registration (CoR) and meets all regulatory requirements.
The NBFC license will enable MobiKwik to directly originate and underwrite loans, reducing its dependence on third-party lending partners. This transition is expected to enhance profit margins, accelerate product rollout, and provide stronger control over credit underwriting and risk management.
The development is seen as a “significant milestone” in strengthening the company’s financial services portfolio and expanding beyond its core digital payments business.
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Focus on Credit Expansion and Financial Inclusion
With the licence, MobiKwik plans to offer a range of secured and unsecured credit products targeting both consumers and MSMEs. The company will particularly focus on underserved segments in Tier II and Tier III markets, aiming to deepen financial inclusion.
Leveraging its AI/ML-driven technology stack and a user base exceeding 186 million, MobiKwik intends to deliver personalized and scalable financial products across segments.
Industry trends indicate that fintech firms are increasingly building their own loan books to improve operational efficiency and comply with evolving regulatory frameworks.
Following the announcement, MobiKwik’s shares surged over 15%, hitting a 52-week high, reflecting strong investor confidence in its transition towards a more integrated financial services model.
