Mobikwik Systems shares experienced a dramatic surge of 16% during Monday's trading session, reaching a day's high of ₹241.90 on the BSE. According to reports from Live Mint, the stock opened at ₹205.15 compared to the previous close of ₹202.22 on Friday, reflecting strong investor optimism about the company's regulatory milestone. The sharp spike came after the company announced receiving Reserve Bank of India's (RBI) approval for its non-banking finance company (NBFC) application.
In an exchange filing, Mobikwik confirmed that the NBFC license will facilitate the launch of a new lending arm, MobiKwik Financial Services Private Limited (MFSPL), a wholly owned subsidiary. As reported by Live Mint, this move will strengthen the company's regulated lending capabilities and enable creation of innovative credit products. The NBFC framework will allow Mobikwik to harness its technological strengths, including AI and ML models, along with its extensive user base to offer tailored financial products. While the primary focus will be on Tier 2 and Tier 3 cities, services will be expanded nationwide to promote financial inclusion.
Upasana Taku, Executive Director, Co-founder & CFO at Mobikwik, emphasized that the approval represents a pivotal step in the company's evolution into a scaled financial services platform. According to Live Mint, she noted that the application was approved in under four months, which she described as an endorsement of the group's credibility. The company expressed gratitude to the RBI for reposing faith in them and highlighted that this regulatory framework will enable them to deepen credit offerings while maintaining strong governance and risk discipline.
Despite broader market weakness, Mobikwik shares have maintained positive momentum in recent periods. As reported by Live Mint, the stock has delivered returns of up to 18% in a week and 40% in a month. The stock, which got listed in December 2024, has provided over 3% gains on a year-to-date basis but has declined 10.29% in a year. The company's strategic expansion into NBFC operations represents a significant step in its evolution from a digital payments platform to a comprehensive fintech services provider.
