MobiKwik secures RBI approval for offline PA license

one mobikwik systems has received an in-principle approval for its Payment Aggregator - Physical (PA-P) license from the Reserve Bank of India (RBI). This regulatory milestone enables the company to deepen its offline merchant payments business across India and targets 10X growth in its merchant business by FY28. The approval strengthens the company's position as a full-stack fintech platform serving consumers and merchants.

Strategic Growth Targets

With the RBI approval in place, One MobiKwik Systems has outlined an ambitious target of 10X growth in its merchant business by FY28. The company's growth strategy is anchored around three key segments:

Small Businesses: Expanding digital payment acceptance among India's vast small and medium enterprise base
Oil & Gas Outlets: Targeting fuel retail and related outlets as a high-volume transaction segment
Organised Retail: Deepening penetration across organised retail chains and modern trade formats

The company already supports a network of 4.9 million merchants through offerings such as UPI QR, Soundbox and EDC machines. It aims to significantly ramp up Soundbox and EDC deployments to meet its stated goal.

Regulatory Milestone

The Payment Aggregator - Physical (PA-P) license from the RBI is a critical regulatory requirement for entities facilitating digital payment collections for offline merchants. The following table summarises the key details of this development:

Parameter	Details
Regulatory Approval	RBI Payment Aggregator - Physical (PA-P) License
Issuing Authority	Reserve Bank of India
Merchant Growth Target	10X by FY28
Key Focus Segments	Small Businesses, Oil & Gas Outlets, Organised Retail

Securing this license positions One MobiKwik Systems to formally operate as a payment aggregator for physical commerce, enabling the company to onboard merchants and process digital transactions under a regulated framework. The Group had also received the Payment Aggregator - Online (PA-O) license through its subsidiary Zaakpay approximately a year ago, strengthening its omnichannel merchant payments capabilities.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.03%	+0.47%	-10.78%	-16.50%	-29.64%	-63.22%

One MobiKwik Systems Limited’s board of directors convened on May 22, 2026, to deliberate on strategic restructuring and regulatory compliance measures. Based on the Audit Committee's recommendations, the board approved several key proposals, including the sale of its Lending Services Provider (LSP) business and amendments to its Memorandum of Association (MOA). These decisions are contingent upon receiving the necessary approvals from the company's shareholders.

Alteration of Memorandum of Association

To comply with the Reserve Bank of India's (RBI) Master Directions on Payment Aggregators dated September 15, 2025, the board approved an amendment to the object clause of the MOA. This change aims to include the activity of operating as a Payment Aggregator – Physical Point of Sale. The company intends to apply for the Certificate of Authorisation from the RBI following this alteration.

Sale of LSP Business

The board sanctioned the slump sale of the company's LSP business, which forms part of its financial services division, to MobiKwik Distribution Services Private Limited (MDSPL). MDSPL is a wholly-owned subsidiary of the company and was formerly known as MobiKwik Credit Private Limited. The rationale for this transfer stems from a requirement by the RBI, where Mobikwik Financial Services Private Limited must transfer the LSP business to MDSPL as a pre-condition for obtaining a Certificate of Registration for NBFC Business.

Transaction Details

The LSP business contributed INR 2,613.75 million in revenue for FY 2025-2026, accounting for 22.70% of the company's standalone revenue. As of March 31, 2026, the net worth of this business stood at INR 952.21 million, representing 16.94% of the company's standalone net worth. The total consideration for the slump sale will be discharged by MDSPL through the issuance of Non-Convertible Debentures, based on the book value of assets and liabilities as of the appointed date.

Metric	Details
Buyer	MobiKwik Distribution Services Private Limited (MDSPL)
Relationship	Wholly-owned subsidiary
LSP Business Revenue (FY 2025-2026)	INR 2,613.75 million (22.70% of standalone revenue)
LSP Business Net Worth (March 31, 2026)	INR 952.21 million (16.94% of standalone net worth)
Consideration	Issuance of Non-Convertible Debentures
Expected Completion	End of Q2 FY 2026-27

The transaction is classified as a related party transaction but will be conducted at arm’s length, as the consideration is based on book value. The completion of the sale is expected by the end of the second quarter of FY 2026-27, subject to shareholder approval and customary conditions precedent. There will be no change in the shareholding pattern of the company as a result of this transaction.

Variation in IPO Proceeds

Furthermore, the board approved a variation in the objects and terms of utilization of the Initial Public Offering (IPO) proceeds, along with an extension of time limits for their utilization. The company stated that applicable disclosures regarding these changes will be made when the notice of the Postal Ballot is issued to seek shareholder approval for the aforementioned matters.