MobiKwik approves slump sale of lending services business amid NBFC plans
Himanshu Bose
One MobiKwik Systems Ltd on Friday announced that its board has approved the slump sale and transfer of its Lending Services Provider (LSP) business to MobiKwik Distribution Services Private Limited (MDSPL), a wholly owned subsidiary of the company.
According to the company, the move is linked to regulatory requirements tied to its NBFC ambitions. The filing stated that Mobikwik Financial Services Private Limited, another wholly owned subsidiary, has applied to the Reserve Bank of India (RBI) for a Certificate of Registration (CoR) to operate an NBFC business, and transfer of the LSP business is a pre-condition for obtaining the licence.
The company said the LSP business generated revenue of ₹261.37 crore during FY26, accounting for around 22.7% of the company’s standalone revenue. The net worth of the business stood at ₹95.22 crore as of March 31, 2026, representing around 16.94% of standalone net worth.
The consideration for the slump sale will be discharged through issuance of non-convertible debentures (NCDs) by MDSPL to the parent company and will be based on the book value of assets and liabilities of the LSP business on the appointed date. For reference, the audited book value of assets and liabilities of the business stood at ₹95.22 crore as of March 31, 2026.
The proposed transaction is expected to be completed by the end of the second quarter of FY27, subject to shareholder approval and execution of the business transfer agreement (BTA).
MobiKwik clarified that there will be no change in the company’s shareholding structure following the transfer, as the transaction is being undertaken between the listed entity and its wholly owned subsidiary.
The board also approved amendment of the company’s Memorandum of Association to include operating as a Payment Aggregator, in line with RBI’s Payment Aggregator – Physical Point of Sale regulations.
Additionally, the company approved variation in utilisation of IPO proceeds and extension of timelines for deployment of the funds, subject to shareholder approval.
MobiKwik operates across digital payments, financial distribution and consumer fintech services, including credit distribution, wallet services and merchant payments.
Disclaimer: This article is based on company filings and publicly available information. Investors are advised to consult certified financial advisors before making investment decisions.