MobiKwik’s subsidiary, MobiKwik Financial Services Pvt Ltd (MFSPL), has received regulatory clearance from the Reserve Bank of India to operate as a non-banking financial company, with operations expected to commence within the next three to six months.
- MobiKwik’s NBFC plans complement existing lending partnerships
- Targets ₹5,000 Cr in loan disbursal over next 3–4 years
- Co-lending model limits MobiKwik’s capital exposure to 10%
What happened
The company plans to deploy an asset-light co-lending strategy, partnering primarily with banks and other NBFCs where MobiKwik contributes 10% and its partners fund 90% of the loans. Initial focus will be on providing both secured and unsecured credit products to individual consumers and MSMEs, complementing MobiKwik’s existing lending service provider business by originating credit directly through its NBFC unit.
Why it matters
Launching the NBFC arm allows MobiKwik greater operational flexibility to develop new credit products, speed up market entry, and improve lending economics while continuing to leverage existing partnerships. With ambitions to disburse ₹5,000 crore in loans over the next three to four years, MobiKwik aims to enhance its role in the lending ecosystem beyond acting as a marketplace facilitator.
This strategic move aligns with the company’s commitment to responsible lending and sustainable growth. It also mitigates risk exposure by only committing 10% of the loan amount under co-lending, relying on underwriting and collections capabilities to maintain credit quality. The NBFC launch coincides with a strong performance quarter, with MobiKwik reporting its highest-ever quarterly net profit and notable growth in its lending business segment.
What to watch next
Industry observers will be keen to monitor how quickly MFSPL ramps up lending volumes and expands its co-lending partnerships amid evolving credit demand dynamics in India. The company’s ability to balance growth while maintaining prudent underwriting standards and responsible lending practices will be critical for long-term success.
Further, tracking the shift of digital lending disbursals routed through the NBFC, initially targeted to be around 10%, will provide insights into the operational impact of the subsidiary on MobiKwik’s overall lending business. Market participants will also watch how the NBFC leverages technology and partner networks to compete effectively in the growing digital credit space serving consumers and MSMEs.