MobiKwik Bets on NBFC Play Amid Mounting Losses and Market Struggles

In India’s ever-evolving fintech landscape, few names are as synonymous with digital wallets and lending experiments as MobiKwik. But the Gurugram-based company, which has been under mounting financial pressure, is now doubling down on a bold new path—betting big on its freshly minted non-banking financial company (NBFC) subsidiary.

Just five months after stepping into the NBFC business, MobiKwik’s board has approved an investment of INR 9.99 crore in its subsidiary Mobikwik Financial Services Pvt Ltd (MFSPL). The infusion will be carried out in one or more tranches by October 10, 2025.

According to its stock exchange disclosure on October 1, the fintech said the investment will help MFSPL operate as an NBFC and expand into leasing and hire purchase agreements across a wide array of assets—ranging from machinery and equipment to vehicles, ships, aircraft, factories, and even real estate.

A New Chapter in MobiKwik’s Journey

MobiKwik officially set up the subsidiary on April 23, 2025, with an initial paid-up capital of just INR 1 lakh. While the company has not clarified whether MFSPL has secured an NBFC licence from the Reserve Bank of India (RBI), the move signals its intent to gain tighter control over lending operations—something it had earlier managed only through partnerships with banks and other NBFCs.

By bringing lending under its own roof, MobiKwik is looking to add a new revenue stream and strengthen its financial footing. The interest income from the NBFC operations could help shore up revenues, while also opening up cross-selling opportunities to its existing customer base.

But the timing of this big bet is telling.

Navigating Choppy Financial Waters

MobiKwik’s financial performance has been on shaky ground. After reporting consistent quarterly losses through FY25, the company posted a net loss of INR 41.9 crore in Q1 FY26—a nearly six-fold increase from the INR 6.6 crore loss it registered in the same quarter last year.

Revenue, too, has taken a hit. The company’s topline dropped 21% year-on-year, from INR 342.3 crore in Q1 FY25 to INR 271.4 crore in Q1 FY26.

The struggles, according to cofounder and CFO Upasana Taku, stem largely from regulatory headwinds. In her recent conversation with media, Taku noted that RBI’s tightening of peer-to-peer (P2P) lending norms forced fintechs like MobiKwik to either shut down or overhaul key lending products. The company also discontinued its buy-now-pay-later (BNPL) service, Zip, which had been one of its flagship offerings.

The fallout was swift: revenues from lending plummeted, user activity declined, and the company’s overall growth momentum stalled.

Unsurprisingly, MobiKwik’s stock has borne the brunt of this turbulence. Shares of the company have fallen nearly 55% year-to-date, currently trading at INR 274 apiece. For a company once hailed as a pioneer in India’s fintech space, the steep fall highlights the challenges of navigating both regulatory uncertainty and shifting consumer behavior.

Why NBFC Could Be MobiKwik’s Lifeline

Despite the headwinds, MobiKwik’s pivot towards an in-house NBFC operation suggests a calculated risk. By cutting dependence on external partners, the company can design and price lending products with more flexibility. The move also aligns with a broader industry trend where fintechs are increasingly looking to own the lending rails rather than merely act as intermediaries.

Still, questions remain. The lack of clarity around whether MFSPL holds an NBFC licence raises compliance concerns. Moreover, in an environment where RBI has been tightening its scrutiny on digital lenders, MobiKwik’s ability to scale this vertical profitably will be closely watched.

For now, the INR 9.99 crore capital infusion appears modest when compared to the company’s mounting losses. But if MobiKwik can successfully build a lending ecosystem under its NBFC arm, it may well carve out a much-needed new growth engine.

MobiKwik’s gamble with its NBFC subsidiary represents both an opportunity and a test. On one hand, it offers a chance to reclaim control over lending and rebuild revenues. On the other, it exposes the company to greater regulatory and operational risks at a time when its financials are already under pressure.

As India’s fintech sector continues to mature—and regulators keep a closer eye on digital lending practices—the coming months will be crucial in determining whether MobiKwik’s NBFC bet becomes a turnaround story or yet another cautionary tale from the country’s turbulent fintech journey.