What’s new

• Mobikwik received in-principle RBI approval for a Payment Aggregator - Physical (PA-P) license.
• The license allows expansion of offline infrastructure like Soundbox and EDC machines.
• The company aims to scale its current base of 4.9 million merchants tenfold by FY28.

Why it matters

This license opens a path into the offline payments market. It provides a way to earn revenue through device rentals and merchant discount rates that online segments lack. The approval validates the company's compliance framework.

What we’re watching

• The pace of EDC machine and Soundbox deployment.
• Revenue shifts as the offline business scales relative to online operations.
• Competition within the ₹1.8-2 trillion offline payments market.

The full read

Mobikwik has secured in-principle approval from the RBI for a Payment Aggregator - Physical (PA-P) license. This regulatory win allows the fintech to expand its offline merchant infrastructure, specifically Soundbox and EDC machines, beyond its current base of 4.9 million merchants. Management targets a tenfold increase in the merchant business by FY28, focusing on small businesses, oil and gas outlets, and organized retail. This follows the recent receipt of an online payment aggregator license for its subsidiary Zaakpay and an NBFC license. By entering the ₹1.8-2 trillion offline payments market, Mobikwik gains access to revenue streams like device rentals and merchant discount rates. The license is a clear signal of regulatory compliance. It provides the necessary foundation to scale operations in a segment that has remained largely underpenetrated for the firm. The next test is how quickly the company can deploy its hardware to capture this market share. It won't be easy.

Primary source: BSE · NSE

What’s new

• Mobikwik is transferring its lending business to a wholly owned subsidiary in a slump sale.
• The transferred unit accounts for 22.7% of Mobikwik’s total FY26 revenue.
• The subsidiary will pay for the assets using non-convertible debentures.

Why it matters

This restructuring is the price of admission for an NBFC license. By moving nearly a quarter of its revenue into a regulated subsidiary, Mobikwik clears a major hurdle to launching its own co-lending operations.

What we’re watching

• Completion of the transfer, expected by the end of the September quarter.
• Progress on the NBFC license application with the RBI.
• Integration of the subsidiary’s new co-lending operations in FY27.

The full read

One Mobikwik is moving its lending services business into a wholly owned subsidiary, MobiKwik Distribution Services. The business is substantial; it contributed ₹261.4 crore in revenue last year, which represents 22.7% of the total standalone top line and 16.9% of the firm's net worth.

It is a regulatory prerequisite.

The subsidiary will fund the acquisition through non-convertible debentures issued to the parent company. This internal shuffle is the necessary hurdle to securing an NBFC certificate of registration from the Reserve Bank of India, which is essential before the entity can begin co-lending operations in FY27. Beyond this transfer, the board also cleared amendments to the memorandum to include payment aggregator operations and revised the deployment plan for IPO proceeds. The legal structure changes this quarter, but the real test is whether this new architecture successfully unlocks the lending license for the group.

Primary source: BSE · NSE