In a key development for India’s fintech sector, One MobiKwik Systems announced on Monday that it has received approval from the Reserve Bank of India for a non-banking financial company (NBFC) licence.
This approval will allow the company to introduce its lending arm, Mobikwik Financial Services, expanding its presence in regulated credit offerings. Following the announcement, shares of the company surged by 14%.
MobiKwik, which operates a digital wallet, has already diversified into financial product distribution, including credit and investments. With the NBFC licence, the company aims to roll out lending products faster and improve margins by bringing its credit operations in-house.
The new unit is expected to provide both secured and unsecured loans to consumers as well as small businesses, with a focus on underserved markets.
The company added that its non-bank lending operations will begin after it receives a certificate of registration from the central bank, subject to meeting certain conditions.
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