Home / Business and Economy / Fintech Leap: MobiKwik Gets RBI NBFC Nod
Fintech Leap: MobiKwik Gets RBI NBFC Nod
27 Apr
Summary
- MobiKwik received RBI approval for an NBFC license.
- The approval allows direct lending operations.
- Shares surged 12% following the announcement.
One MobiKwik Systems saw its shares climb by as much as 12% on Monday subsequent to obtaining approval from the Reserve Bank of India (RBI) to function as a non-banking financial company (NBFC). This regulatory clearance empowers MobiKwik to initiate direct lending activities via its subsidiary, MobiKwik Financial Services.
The acquisition of the NBFC license is a strategic maneuver enabling MobiKwik to expand its regulated credit products and serve a broader demographic of consumers and small businesses. By bringing lending operations in-house, the company aims to improve profit margins and lessen its reliance on external lending partners.
MobiKwik intends to offer both secured and unsecured loans, targeting under-served retail and MSME segments. The company plans to leverage its existing user base of over 186 million to scale its credit business effectively.
Operations will commence upon receiving a certificate of registration from the RBI, contingent upon meeting specific conditions. This move grants MobiKwik greater control over crucial aspects like underwriting, risk management, and collections, vital for a thriving lending enterprise.
"The NBFC application approval is a pivotal step in MobiKwik Group's evolution into a scaled financial services platform," stated Upasana Taku, co-founder and CFO. The approval provides a framework to deepen credit offerings while upholding governance and risk discipline.
