Indian fintech firm MobiKwik has received approval from the Reserve Bank of India for a non-banking financial company license, according to a report by Reuters.
The regulatory nod clears the way for the company to launch a lending arm, MobiKwik Financial Services, expanding its regulated credit offering.
Shares of the company rose 14% following the announcement on Monday (27 April).
The license will enable the firm to roll out lending products faster and improve margins by bringing credit operations in-house, according to the company.
The new unit will offer secured and unsecured loans to consumers and small businesses, with a focus on underserved markets.
Non-bank lending operations will begin after the company receives a certificate of registration from the central bank upon the fulfilment of certain conditions.
MobiKwik currently operates a digital wallet and has expanded into the distribution of financial products including credit and investments.
Featured image credit: Edited by Fintech News Singapore, based on image by wahyu_t via Freepik
