Technology · India Bureau
MobiKwik shifts lending operations to NBFC subsidiary following RBI nod
The fintech platform has transferred its digital lending business to its non-banking financial company subsidiary, positioning itself to disburse over Rs 1,000 crore quarterly.
LSN India ·
MobiKwik has completed the transition of its digital lending operations to MDSPL, its non-banking financial company subsidiary, following regulatory approval from the Reserve Bank of India. The restructuring marks a significant shift in the company's business model as it formalizes its lending activities under a dedicated NBFC entity.
The move enables MobiKwik to scale its lending operations substantially, with the company projecting quarterly disbursals exceeding Rs 1,000 crore through the subsidiary. This expansion reflects growing demand for digital credit products in India's emerging fintech ecosystem.
The transfer to MDSPL allows MobiKwik to operate within a clearer regulatory framework while maintaining its position in the competitive digital lending market. The RBI approval of the subsidiary structure underscores the central bank's oversight of lending activities by fintech platforms, ensuring compliance with established financial regulations.
The restructuring positions MobiKwik to enhance its lending capabilities and reach a broader customer base through its established digital platform, while operating under formal NBFC governance standards.