MobiKwik Infuses ₹61 Cr In Lending Arm, Appoints Ex-Bajaj Markets’ Manish Pathania As Its CBO

Months after receiving a regulatory nod for its NBFC licence, MobiKwik has now completed the transfer of its digital lending operations and associated team to its wholly owned subsidiary, MobiKwik Distribution Services Private Limited (MDSPL). 

Beyond the restructuring, the fintech company has also announced that it will be pumping ₹60.85 Cr as equity into MDSPL.

To strengthen the subsidiary’s operations, MobiKwik has appointed former Bajaj Markets exec Manish Pathania as the chief business officer (CBO) of MDSPL. Pathania, who brings nearly two decades of experience across financial institutions like GE Money and HDB Financial Services, will be responsible for supervising the digital lending business and drive its next phase of growth. 

The development comes months after RBI gave a conditional nod to MobiKwik’s NBFC application, specifying that its lending service provider (LSP) business be migrated to an independent subsidiary before issuing the Certificate of Registration (CoR). 

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.  

The transfer of its digital lending operations to MDSPL has been executed to fulfill this criteria.

“We have built a strong lending franchise through partnerships with banks and NBFCs, while developing capabilities across the lending value chain. Consolidating the business and team under MDSPL, with Manish leading the subsidiary, gives us a dedicated structure to take this business forward,” MobiKwik cofounder, MD, and CEO Bipin Preet Singh said. 

MDSPL was incorporated last year to oversee financing, leasing, and hire-purchase activities across commercial assets including machinery, equipment, plants, vehicles, aircraft, ships, and real estate. 

Initially, MobiKwik had allocated an initial paid-up share capital of ₹1 Lakh for the newly set up subsidiary. Subsequently, in June, the fintech company also issued a postal ballot notice seeking shareholder consent to redirect unspent IPO proceeds toward its payments and lending businesses, along with a proposal to push the utilisation deadline for the remaining funds to FY27. 

Under the proposed changes, MobiKwik expressed its plans to divert ₹60.85 Cr originally earmarked for the organic growth of its financial services business to MDSPL.  

The company is doubling down on digital lending amid a strong financial momentum. In Q1 FY27, MobiKwik reported a consolidated net profit of ₹7.6 Cr against a net loss of ₹41.9 Cr in the year-ago period. Operating revenue rose a marginal 3.7% YoY to ₹281.5 Cr during the quarter.

Its financial services gross profit for Q1 FY27 skyrocketed 459% YoY on the back of improved credit quality, sharper risk management, and efficient loan recovery efforts, the statement added.

Revenue from the financial service segment , which includes ZIP EMI, wealth management, and stock broking, jumped 26% to ₹73.3 Cr in the June quarter from ₹58.3 Cr in the same quarter last year.  

Lending disbursals for the quarter stood at ₹736.7 Cr, seeing a sequential dip primarily due to technology migration associated with the above mentioned transfer to MDSPL. Back then, the management said that disbursal volumes would bounce back starting Q2 FY27.

The company has now set a target to achieve quarterly loan disbursals of ₹1,000+ Cr in the upcoming quarters. 

Shares of MobiKwik ended today’s trading session 1.8% lower at ₹198.85 apiece on BSE.

The post MobiKwik Infuses ₹61 Cr In Lending Arm, Appoints Ex-Bajaj Markets’ Manish Pathania As Its CBO appeared first on Inc42 Media.