Fintech company MobiKwik has received approval from its board to incorporate and invest in one or more wholly-owned subsidiaries as it explores new avenues to expand its business.
“The said investment will be in compliance with Section 179 and all other applicable provisions of the Companies Act and necessary approvals, as required,” the company said in an exchange filing.
While the digital wallet provider did not disclose the fine print of its expansion plans, the announcement comes only days after cofounders Upasana Taku and Bipin Preet Singh said MobiKwik is by this year itself.
In a post-earnings call for the December quarter, Taku said MobiKwik’s immediate priority is expanding its spend analytics platform Lens and foraying into the insurance aggregator space.
“We have made a lot of investments in Lens, which we see as a digital financial advisor for the masses. The platform could lead to an increase in user investments in financial instruments like fixed deposits, digital gold, etc, using MobiKwik,” she added.
The listed fintech giant is also planning to venture into the insurance distributor space, for which it has already obtained the necessary licence from the Insurance Regulatory and Development Authority of India (IRDAI).
Besides, MobiKwik also plans to scale up its prepaid payment instruments (PPI) offering, expand its lending product portfolio and launch a cobranded RuPay Credit Card on UPI.
It is pertinent to mention that MobiKwik in the third quarter of the fiscal year 2024-25 (Q3 FY25), hurt by lower financial services revenue and higher lending-related costs.
The company reported a consolidated net loss of INR 55.28 Cr during the quarter under review against a profit of INR 5.27 Cr in the year-ago quarter. On a quarter-on-quarter (QoQ) basis, net loss .
The bottom line took a hit even though MobiKwik posted an 18% jump in its operating revenue to INR 269.47 Cr in the December quarter of FY25 from INR 228.93 Cr in the same quarter last year. Sequentially, however, the top line saw a degrowth of 7% from INR 290.64 Cr.
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