MobiKwik Enters Stock Broking Segment

SUMMARY

MobiKwik has set up an wholly owned subsidiary Mobikwik Securities Broking Private Limited to take on the likes of Zerodha and Groww

MSBPL has initial paid-up share capital of INR 1 Lakh. MobiKwik plans to pump in INR 2 Cr in the subsidiary in one or more tranches

MobiKwik has a user base of INR 17.2 Cr and it would look to leverage this to gain a big share of the country’s fast-growing investment tech market, expected to become a $74 Bn opportunity by 2030

Fintech major MobiKwik has become the latest entrant to the country’s burgeoning investment tech market. The listed company has set up a wholly owned subsidiary Mobikwik Securities Broking Private Limited (MSBPL) to take on the likes of Zerodha and Groww.

In an exchange filing, the company said that the corporate affairs ministry approved the incorporation of the subsidiary on March 3.

The new entity will operate as a stock broking arm of the Bipin Preet Singh-led company. It will deal in shares, stocks, securities, debt instruments, commodities, currencies and their derivatives.

MSBPL has initial paid-up share capital of INR 1 Lakh. MobiKwik plans to pump in INR 2 Cr in the subsidiary in one or more tranches, the filing added.

The development comes almost a month after the company’s board gave its nod to invest in one or more wholly owned subsidiaries. At the time, the company did not give further details about the expansion plans.

MobiKwik Eyes Entry Into New Verticals

MobiKwik currently offers digital payment offerings such as Pocket UPI where users can make UPI payments directly with the platform’s digital wallet. It also offers other financial services such as micro lending and investments in mutual funds.

While the company reported a net profit of INR 14.1 Cr in FY24, it slipped into the red in all three quarters of the ongoing financial year. In Q3 FY25, the fintech company reported a net loss of INR 55.28 Cr as against a net profit of INR 5.27 Cr in the year-ago quarter. Operating revenue grew 18% year-on-year to INR 269.47 Cr during the quarter.

In a post-earnings call, cofounder and CFO Upasana Taku laid out the plans to return to profitability. Taku said that the company will look to foray into new fintech verticals in 2025.

Besides, the company said that it would focus on expanding its spend analytics platform Lens and foray into the insurance aggregator space. It also has plans to expand its lending product portfolio and launch a cobranded RuPay Credit Card on UPI.

The entry in the stock broking space is part of these expansion plans to shore up revenue and profitability.

The $74 Bn Investment Tech Opportunity

MobiKwik has a user base of INR 17.2 Cr and it would look to leverage this to gain a big share of the country’s fast-growing investment tech market, which is expected to become a $74 Bn opportunity by 2030. As per its Q3 results, Mobikwik added 50 Lakh new users to its platform, an increase of 3% on a quarter-on-quarter basis.

Besides competing with segment leaders like Zerodha, Groww, and Angel One, MobiKwik will also take on other new-age tech startups like Dhan, INDMoney, among others, in the stock broking space.

A number of other fintechs have taken the same path in the past as taken by MobiKwik now to enter the stock broking segment after building a big user base with their initial offerings. While Paytm is present in the segment via Paytm Money, BharatPe launched Invest BharatPe in October last year to add investment offerings to its portfolio. PhonePe, too, entered the wealth tech space by launching Share.Market in 2023.

Shares of MobiKwik ended today’s trading session 4.14% lower at INR 304.50 on the BSE.