MobiKwik Ventures into Stock Broking Business with New Subsidiary, MobiKwik Securities Broking
- ByStartupStory | March 26, 2025
Fintech major MobiKwik has announced its entry into the stock broking business with the launch of its wholly owned subsidiary, MobiKwik Securities Broking. The Ministry of Corporate Affairs (MCA) has approved the incorporation of the new securities broking arm, the company informed the exchanges on Wednesday.
Foray into Stock and Commodity Markets
With this new venture, MobiKwik plans to become a member of various stock and commodity exchanges in India and abroad. The firm aims to engage in the business of dealing with shares, stocks, securities, debt instruments, commodities, currencies, and their derivatives, expanding its footprint in the financial services sector.
The initial capital for MobiKwik Securities Broking has been set at ₹1 lakh, while the parent company plans to infuse an additional ₹2 crore in one or more tranches to support the subsidiary’s growth and operations.
Strengthening Financial Services Offerings
Commenting on the development, Bipin Preet Singh, Co-Founder and CEO of MobiKwik, said:
“Our entry into the stock broking space marks a significant step in MobiKwik’s journey to becoming a comprehensive financial services platform. With MobiKwik Securities Broking, we aim to empower millions of customers with easy access to stock and commodity markets, while expanding our portfolio beyond digital payments and lending.”
Financial Performance and User Growth
Despite its expansion into new business segments, MobiKwik reported a consolidated loss of ₹55.2 crore in Q3 FY25, compared to a profit of ₹5.27 crore in the same period last year. Sequentially, the fintech firm incurred a ₹3.59 crore loss in Q2 FY24.
However, revenue from operations grew 17.7% year-on-year to ₹269.47 crore in Q3 FY25, up from ₹228.93 crore in Q3 FY24. Sequentially, revenue declined by 7.3% from ₹290.64 crore in Q2 FY25.
The company attributed the revenue dip to lower financial services income and higher lending costs, citing a transition to new default loss guarantee (DLG) contracts, which resulted in higher initial costs.
Customer and Merchant Expansion
MobiKwik continues to expand its customer base, adding 5 million new customers and 1,10,000 merchants in Q3 FY25. The company now boasts a registered base of 172 million customers and 4.5 million merchants, reinforcing its position as a leading fintech player in the Indian market.
Looking Ahead
With the launch of MobiKwik Securities Broking, the company aims to diversify its revenue streams and strengthen its foothold in the financial services ecosystem. The move positions MobiKwik to compete with existing players in the stock broking space, offering its large customer base access to diverse investment opportunities.
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