Indian fintech firm One MobiKwik Systems said on Monday that its group has received approval from the Reserve Bank of India for a non–banking financial company (NBFC) licence.
The licence will allow MobiKwik to launch a lending arm, Mobikwik Financial Services, expanding its regulated credit offering.
Shares of the company rose 14% after the announcement.
One MobiKwik Systems operates a digital wallet and has expanded into the distribution of financial products, including credit and investments.
The NBFC licence will also enable MobiKwik to roll out lending products faster and improve margins by bringing credit operations in-house, the company said.
The unit will offer secured and unsecured loans to consumers and small businesses, with a focus on underserved markets.
The company said non–bank lending operations will begin after it receives a certificate of registration from the central bank on fulfilment of certain conditions.
Reuters
