One MobiKwik Systems Ltd. has completed the transfer of its entire digital lending business and associated employees to its wholly owned subsidiary, MobiKwik Distribution Services Private Limited (MDSPL).
MDSPL will undertake MobiKwik’s digital lending activities, including sourcing and distribution of lending products. The transfer followed corporate approvals, including a special resolution approved by shareholders through a postal ballot on July 2, 2026. MobiKwik subsequently infused ₹60.85 crore as equity into MDSPL.
The move follows the Reserve Bank of India’s approval of the Group’s NBFC application in April 2026, subject to the migration of the Lending Service Provider (LSP) business to a wholly owned subsidiary before the Certificate of Registration is issued.
Manish Pathania, who previously headed the digital lending business at Bajaj Markets, has been appointed Chief Business Officer of MDSPL. He will oversee the lending vertical, including customer origination, underwriting, credit risk management, servicing and collections. Pathania has nearly two decades of experience in digital lending, business development, channel management and strategic planning, and has also worked with GE Money and HDB Financial Services.
MobiKwik said its Financial Services Gross Profit increased 459 per cent year-on-year in Q1 FY27, supported by improved credit quality and recovery efforts. During the quarter, 32 per cent of disbursals were through the Distribution Model and 68 per cent through the First Loss Default Guarantee (FLDG) Model.
The company said it expects quarterly disbursals to cross ₹1,000 crore in the upcoming quarters, supported by AI-led initiatives and new lender partnerships.
MobiKwik said MDSPL will continue working with financial institutions while expanding its lending offerings for consumers and merchants.