One MobiKwik Systems Limited has completed the transfer of its entire digital lending (Lending Services Provider or LSP) business, along with associated employees, to its wholly owned subsidiary, MobiKwik Distribution Services Private Limited (MDSPL). The transaction was executed in accordance with the Business Transfer Agreement and is effective as of August 18, 2026.

The company disclosed the completion under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The transaction follows previous stock exchange intimations dated May 22, 2026, June 2, 2026, and July 2, 2026. Shareholders approved the move through a special resolution via postal ballot on July 2, 2026.

Transaction Details

The consideration for the slump sale will be discharged through the issuance of Non-Convertible Debentures by MDSPL to One MobiKwik Systems Limited. The valuation is based on the book value of the assets and liabilities of the LSP business as determined on the appointed date, August 18, 2026. Following shareholder approval, One MobiKwik Systems Limited infused ₹60.85 crore as equity into MDSPL.

The LSP business forms part of the company’s broader financial services segment. The restructuring moves this specific lending operations vertical into a dedicated subsidiary entity, allowing for consolidated management under the parent group while separating the operational structure.

Leadership and Strategic Outlook

With the transition complete, Manish Pathania has been appointed Chief Business Officer of MDSPL to spearhead the lending vertical. He will oversee the digital lending business and drive its next phase of growth, building on MobiKwik’s capabilities across customer origination, underwriting, credit risk management, servicing and collections. Pathania brings close to two decades of experience across digital lending, having previously headed the digital lending business at Bajaj Markets and worked for GE Money and HDB Financial Services.

The creation of MDSPL as a dedicated digital lending subsidiary provides a focused operating structure for the digital lending business as the Group propels its broader financial services strategy. Earlier, in April 2026, the RBI had approved the Group’s NBFC application, subject to the condition that the LSP business be migrated to a wholly owned subsidiary before the Certificate of Registration is issued.

Business Performance

The transition comes as MobiKwik’s digital lending business demonstrated strong growth – Financial Services Gross Profit shot up 459% YoY in Q1 FY27, driven by improved credit quality and recovery efforts. During the quarter, 32% of disbursals were through the Distribution Model while 68% of disbursals were through the FLDG (First Loss Default Guarantee) Model.

The Group sees significant headroom to deepen credit penetration across its 9.5 crore engaged existing customers, while maintaining a disciplined approach to underwriting, credit risk and portfolio quality. The Company is poised to achieve quarterly disbursals of ₹1,000+ crore in the upcoming quarters, driven by AI-led growth initiatives and new lender partnerships.

One MobiKwik Systems Limited reported a consolidated net profit of ₹76 million for the quarter ended June 30, 2026 (Q1FY27), securing its third consecutive profitable quarter. The fintech firm’s platform gross merchandise value (GMV) reached an all-time quarterly high of ₹587 billion, growing 50% year-on-year, while net financial services margins expanded fivefold to 5.87%. This performance underscores the company’s successful transition to sustainable profitability, driven by robust credit quality in lending and accelerating Unified Payments Interface (UPI) transaction volumes.

Financial Performance Overview

The company’s total income rose to ₹2,892 million in Q1FY27, up 3% from ₹2,816 million in the year-ago period. Revenue from operations stood at ₹2,815 million, reflecting a 4% increase. The profitability swing was significant, with net profit improving by ₹495 million year-on-year from a loss of ₹419 million. EBITDA also swung positive to ₹158 million, reversing a loss of ₹312 million previously, representing an improvement of ₹470 million.

Contribution profit, a key internal metric, grew by 66% to ₹1,286 million, supported by disciplined cost management. Direct costs declined by 21% year-on-year, while fixed costs remained at 39% of total income as the company continues investing in high-growth segments. Finance and depreciation costs hit a six-quarter low of ₹81 million, down 24% year-on-year.

Business Segment Highlights

The payments business delivered record volume growth, with platform GMV hitting ₹587 billion, up 50% from ₹392 billion in Q1FY26. MobiKwik ranked as the second fastest-growing UPI app in India, with transactions growing 130% year-on-year versus the industry average of 24%. The user base expanded to 193 million, and the merchant base grew to 5.02 million. Net payments margin stood at 13 basis points, while gross margin improved to 37.3% from 27.9% in the prior year.

In financial services, gross profit surged 5.6 times to ₹433 million from ₹77 million, driven by enhanced credit quality and collection efficiency. ZIP EMI GMV grew 6% to ₹7,367 million, with 60% of loans disbursed to repeat customers, indicating strong portfolio retention. Credit risk performance improved by approximately 25%.

Strategic Outlook

Bipin Preet Singh, Co-founder, Managing Director & CEO, stated that profitability is now embedded in the business model, citing 14 straight quarters of GMV growth in payments. The company remains focused on deepening its payments leadership and expanding its digital financial services ecosystem. The reallocation of IPO proceeds toward lending services and offline merchant growth supports this long-term value creation strategy.

What the Numbers Show

The divergence between GMV growth and revenue growth highlights structural shifts in the payments mix. While platform GMV surged 50%, total revenue grew only 3%. This gap stems from significant GMV growth in low-take-rate categories like Consumer UPI and Merchant Business, where take rates are often below 10 basis points or nil. Additionally, the pause on certain card-based payment categories in Q4FY26 and Q1FY27 dampened revenue realization despite volume gains. However, the expansion in Financial Services gross margin to 59% from 13% demonstrates that the lending segment is becoming a primary driver of profitability, offsetting the lower monetization rates in the core payments business.