Fintech firm MobiKwik has completed the transfer of its entire digital lending operations and associated team to its wholly owned subsidiary MobiKwik Distribution Services Private Limited (MDSPL). The transaction was executed in accordance with the Business Transfer Agreement and is effective as of August 18, 2026, with the company disclosing the completion under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This development comes months after receiving regulatory approval, with the RBI approving the Group's NBFC application in April 2026, subject to the condition that the Lending Service Provider (LSP) business be migrated to a wholly owned subsidiary before the Certificate of Registration (CoR) is issued. The transfer includes all associated employees and operations related to the digital lending division, fulfilling the regulatory criteria for NBFC licensing. As reported by CNBC TV18, the transfer of the LSP business was executed on a 'slump sale' basis, with the consideration for the sale to be discharged through the issuance of Non-Convertible Debentures (NCDs) by MDSPL to the parent company, based on the book value of assets and liabilities as of August 18, 2026. The restructuring comes as MobiKwik's digital lending business continues to scale, with the company building its lending franchise over the past seven years through partnerships with banks and financial institutions. The NBFC licence will allow MobiKwik to launch a new lending division that will enhance its lending capabilities, credit products' stack and serve a broader base of consumers and merchants.
To strengthen MDSPL's operations, MobiKwik has appointed Manish Pathania as the chief business officer (CBO) of MDSPL. Pathania brings nearly two decades of experience across financial institutions including GE Money and HDB Financial Services, and will be responsible for supervising the digital lending business and driving its next phase of growth. As reported by CNBC TV18, Pathania brings close to two decades of experience in digital lending, business development, channel management and strategic planning. Before joining the MobiKwik Group, he headed the digital lending business at Bajaj Markets and will oversee the business's next phase of growth, leveraging MobiKwik's capabilities across customer origination, underwriting, credit risk management, servicing and collections. MobiKwik cofounder, MD, and CEO Bipin Preet Singh stated that consolidating the business and team under MDSPL, with Manish leading the subsidiary, gives them a dedicated structure to take this business forward. "The completion of the digital lending business transfer is an important milestone in MobiKwik's lending journey. Consolidating the business and team under MDSPL... gives us a dedicated structure to take this business forward. The transition also supports our broader journey towards building a more integrated and regulated lending platform," Singh said.
The LSP transfer followed requisite corporate approvals, including a special resolution approved by shareholders through a postal ballot on July 2, 2026. Following the shareholder approval, One MobiKwik Systems infused ₹60.85 crore as equity into MDSPL, as reported by CNBC TV18. The company had initially allocated an initial paid-up share capital of ₹1 lakh for the newly set up subsidiary, with the recent infusion representing a significant capital injection to support the company's expansion plans and AI-led growth initiatives in the digital lending space. The transaction follows previous stock exchange intimations dated May 22, 2026, June 2, 2026, and July 2, 2026. Under the proposed changes, MobiKwik expressed its plans to divert ₹60.85 crore originally earmarked for the organic growth of its financial services business to MDSPL. The valuation for the slump sale is based on the book value of the assets and liabilities of the LSP business as determined on the appointed date, August 18, 2026.
The company reported consolidated net profit of ₹7.6 crore in Q1 FY27 against a net loss of ₹41.92 crore in the year-ago period, demonstrating a remarkable turnaround. Operating revenue rose 3.7% YoY to ₹281.48 crore during the quarter, up from ₹271.36 crore in Q1 FY26, as reported by CNBC TV18. Financial services gross profit skyrocketed 459% YoY driven by improved credit quality, sharper risk management, and efficient loan recovery efforts. Revenue from the financial services segment, including ZIP EMI, wealth management, and stock broking, jumped 26% to ₹73.3 crore from ₹58.3 crore in the same quarter last year. During Q1 FY27, 32% of disbursals were through the distribution model, whereas the rest were through the first loss default guarantee (FLDG) model, with 68% coming through the FLDG model. The company has set a target to achieve quarterly loan disbursals of ₹1,000+ crore in upcoming quarters, with lending disbursals for Q1 FY27 standing at ₹736.7 crore, showing a sequential dip primarily due to technology migration associated with the MDSPL transfer. Management expects disbursal volumes to bounce back starting Q2 FY27, with the creation of MDSPL as a dedicated digital lending subsidiary providing a focused operating structure for the digital lending business.
Shares of MobiKwik ended today's trading session 1.8% lower at ₹198.85 apiece on BSE. The company expects over ₹1,000 crore in quarterly disbursals driven by AI-led growth initiatives and new lender partnerships. With MDSPL now providing a dedicated operating structure, MobiKwik plans to scale its lending business further across its consumer and merchant ecosystem. The company sees further potential to deepen credit penetration across its 9.5 crore engaged existing customers while maintaining a focus on underwriting, credit risk and portfolio quality. Management expects disbursal volumes to bounce back starting Q2 FY27, with the creation of MDSPL as a dedicated digital lending subsidiary providing a focused operating structure for the digital lending business. The transition comes as MobiKwik's digital lending business demonstrated strong growth, with the Group seeing significant headroom to deepen credit penetration across its existing customer base while maintaining disciplined underwriting and credit risk management practices.
