News · Financial Services

MobiKwik moves lending to subsidiary with equity infusion

By Startup Enthusiast · 18 August 2026

What they do

MobiKwik shifted its digital lending operations to a new wholly owned subsidiary named MobiKwik Distribution Services

The parent company invested ₹60.85 Crore into the subsidiary to fund this restructuring and expansion

This move follows RBI conditions for an NBFC license and coincides with strong Q1 financial services growth

MobiKwik moved its digital lending operations and team to a new subsidiary called MobiKwik Distribution Services Private Limited.
The company made an equity infusion of ₹60.85 Cr into this new subsidiary to support the transition.
Manish Pathania was appointed as the chief business officer of the new subsidiary to lead its operations.
This restructuring was required by the RBI as a condition for granting a Non-Banking Financial Company license.
The RBI mandated that the LSP business (Loan Service Provider) be moved to an independent subsidiary before issuing registration.
MobiKwik plans to use the NBFC licence to launch new credit products and serve more consumers and merchants.
The subsidiary MDSPL was incorporated last year for financing activities like leasing and hire-purchase across various assets.
Shareholders approved redirecting unspent IPO proceeds toward payments and lending businesses in June 2026.

The move ensures regulatory compliance while allowing MobiKwik to expand its lending capabilities independently.
The restructuring supports the company's strategy to grow its financial services segment significantly.

MobiKwik operates an online platform for mobile and DTH recharges and bill payments.
The new subsidiary MDSPL handles financing, leasing, and hire-purchase for commercial assets like machinery and vehicles.
The company reported a Q1 FY27 net profit of ₹7.6 Cr, reversing a previous loss.
Operating revenue grew 3.7% YoY to ₹281.5 Cr in the first quarter of FY27.
Financial services gross profit surged 459% YoY due to improved credit quality and risk management.
The financial services segment revenue reached ₹73.3 Cr, up 26% from the previous year.
Lending disbursals were ₹736.7 Cr, showing a sequential dip due to technology migration.
The company targets quarterly loan disbursals of ₹1,000+ Cr in upcoming quarters.

MobiKwik aims to achieve quarterly loan disbursals of over ₹1,000 Cr in future quarters.
The company will expand its lending division using the newly acquired NBFC licence.