MobiKwik To Infuse INR 10 Cr In NBFC Arm

SUMMARY

MobiKwik said that infusion will be utilised to enter leasing and hire-purchase deals for assets such as machinery, equipment, vehicles, ships, aircraft and factories

The company will be investing the amount in the subsidiary in one or more tranches by October 10

MobiKwik’s net loss zoomed 6X YoY toINR 41.9 Cr in Q1 FY26 while its top line declined 21% YoY to INR 271.4 Cr during the quarter under review

About five months after entering the NBFC business, fintech company MobiKwik’s board has approved an investment of INR 9.99 Cr in its NBFC subsidiary Mobikwik Financial Services Pvt Ltd (MFSPL). The company will be investing in one or more tranches by October 10.

In a disclosure today (October 1), MobiKwik said the primary objective of the investment is to operate as an NBFC and enter leasing and hire purchase-deals for assets such as machinery, equipment, vehicles, ships, aircraft, factories, and real estate.

MobiKwik set up the NBFC subsidiary on April 23 with an initial paid-up capital of INR 1 Lakh. However, it did not apply for an NBFC licence. The company hasn’t explicitly mentioned whether MFSPL is a licensed NBFC till now.

Prior to setting up its own NBFC arm, MobiKwik partnered with other banks and NBFCs to offer loans and credit cards. While an in-house NBFC would allow the company to assert greater control over its lending, it would also add a new revenue stream. While the NBFC’s interest income will add on to MobiKwik’s top line, it will also enhance cross-selling opportunities.

The fintech is currently navigating a financial logjam. After reporting quarterly losses throughout FY25, it incurred a net loss of INR 41.9 Cr in Q1 FY26. This represented a near 6X jump from the INR 6.6 Cr loss incurred in Q1 FY25.

The company’s top line also declined 21% to INR 271.4 Cr during the quarter under review from INR 342.3 Cr in Q1 FY25.

Speaking with Inc42 in August, MobiKwik’s CFO Upasana Taku said that the company’s financial metrics had been impacted by a downturn in the credit distribution system in Q3 and Q4.

She said that RBI regulations on peer-to-peer (P2P) lending forced companies like MobiKwik to shut down or restructure their lending products. MobiKwik also shut down its buy-now-pay-later offering Zip, leading to a sharp decline in lending revenue and user activity. The company, however, downplayed the impact.

The declining financial health has also impacted the company’s performance on the bourses. The company’s shares have plunged close to 55% year-to-date to INR 274 apiece.