MobiKwik transfers lending unit to subsidiary

MobiKwik Systems Ltd. has transferred its digital lending business to its wholly owned subsidiary, MobiKwik Distribution Services Private Limited (MDSPL), according to a stock exchange filing on Wednesday. The transfer fulfills regulatory requirements set by the Reserve Bank of India (RBI) for the company's non-banking financial company (NBFC) application.

MobiKwik has appointed Manish Pathania as Chief Business Officer of MDSPL to lead the lending division. Pathania brings prior experience in digital lending from Bajaj Markets, GE Money, and HDB Financial Services.

The restructuring involved moving the entire Lending Service Provider (LSP) business, including loan sourcing, distribution, and associated employees, to MDSPL. Following the transfer, MobiKwik invested 608.5 million rupees in equity into the subsidiary.

Shareholders approved the restructuring via postal ballot on July 2, 2026, aligning with RBI's conditions for approving the group's NBFC application. The regulator mandated the lending business's relocation to a separate subsidiary before issuing a Certificate of Registration.

This move follows a period of significant financial growth for the lending unit. MobiKwik reported a 459% year-on-year increase in Financial Services Gross Profit in Q1 FY27. The company aims to achieve quarterly disbursals exceeding 1,000 million rupees through AI initiatives and new lender partnerships.