MobiKwik to enter stock broking business, incorporates new subsidiary

Fintech firm MobiKwik is making its foray into the stock broking space after it announced the launch of its wholly owned subsidiary, MobiKwik Securities Broking.

 

The Ministry of Corporate Affairs approved the incorporation of the securities broking arm of the firm, the company informed the exchanges on Wednesday.

 

The company plans to become a member of various stock and commodity exchanges in the country and abroad. It marks the firm’s foray into the business of dealing with shares, stocks, securities, debt instruments, commodities, currencies, and their derivatives.

 

MobiKwik Securities Broking has been set up with an initial capital of Rs 1 lakh, while the parent company plans to infuse an additional Rs 2 crore in one or more tranches.

 

MobiKwik reported a consolidated loss of Rs 55.2 crore in the third quarter of financial year 2025 (Q3 FY25), slipping after a profit of Rs 5.27 crore in the same period last year. Sequentially, the fintech company made a loss of Rs 3.59 crore in Q2 FY24.

 

Revenue from operations grew 17.7 per cent: from Rs 228.93 crore in Q3 FY24 to Rs 269.47 crore in Q3 FY25. However, such revenue declined sequentially by 7.3 per cent: from Rs 290.64 crore in Q2 FY25.

 

The company attributed the decline to lower financial services revenue and higher lending costs due to a transition to new default loss guarantee (DLG) contracts. It said a larger portion of such costs is incurred in the initial period of a contract.

 

The company has a registered base of 172 million customers and 4.5 million merchants. It added 5 million new customers and 1,10,000 merchants in Q3. 

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