One Mobikwik Systems , a leading fintech company, is considering applying for a Non-Banking Financial Company (NBFC) license from the Reserve Bank of India (RBI). This move comes after the company invested Rs 9.99 crore in its subsidiary, Mobikwik Financial Services Pvt, in October.

Strategic Investment and License Application

MobiKwik co-founder Upasana Taku revealed that the company has incorporated the subsidiary with the minimum required capital and may file for the NBFC license. The proposed NBFC aims to operate in leasing and hire purchase deals for various assets, including:

• Machinery
• Equipment
• Vehicles
• Real estate

Business Model Clarification

MobiKwik emphasized that it does not intend to become a direct lender. Instead, the company aims to:

1. Better understand its users
2. Facilitate matchmaking with lending partners

This approach aligns with MobiKwik's strategy to enhance its financial services offerings while maintaining its core business model.

Financial Performance

MobiKwik's recent financial results reveal some challenges:

The company attributed the decline in financial services revenue to:

• Industry moderation in unsecured lending
• Strategic shift away from buy-now-pay-later products
• New accounting treatments

Future Outlook

Despite the current challenges, MobiKwik remains optimistic about its future performance. The company expects to achieve EBITDA breakeven in the second half of fiscal 2026.

As MobiKwik navigates the evolving fintech landscape, its potential entry into the NBFC space could open new avenues for growth and diversification. However, the company will need to address the recent revenue challenges and capitalize on the growth in its payments business to achieve its financial goals.

One Mobikwik Systems , a leading digital financial services platform, is charting its course back to profitability while expanding its product offerings, according to recent statements from the company's leadership.

Financial Outlook

Upasana Taku, Co-founder and CFO of MobiKwik, has announced that the company anticipates a return to profitability in the second half of FY26. This projection comes after a period of challenges in the unsecured lending space, which impacted the company's previously consistent profit streak.

Despite these headwinds, MobiKwik has shown signs of improvement:

This reduction in negative EBITDA indicates a positive trend in the company's financial performance.

Business Segment Performance

MobiKwik's business segments have shown varied performance:

1. Payments Business: Recorded a threefold growth in the previous year.
2. Credit Distribution: Showing signs of recovery with 30-32% growth in disbursals in recent quarters.

New Product Launches and Licenses

MobiKwik is actively expanding its financial products portfolio, particularly targeting Tier-2 and Tier-3 markets. Recent developments include:

• Securing payment aggregator and broking licenses
• Launching the 'First Card', a RuPay credit card on UPI
• Introducing 'Lens.AI', an AI-powered financial analysis tool

These initiatives demonstrate MobiKwik's commitment to innovation and market expansion in the competitive fintech landscape.

Looking Ahead

As MobiKwik navigates its path back to profitability, the company's focus on diversifying its product offerings and tapping into underserved markets could be key factors in its growth strategy. The fintech sector remains dynamic, and MobiKwik's ability to adapt and innovate will be crucial in achieving its financial goals and maintaining its position in the market.