MobiKwik launches new subsidiary to enter stock broking business

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MobiKwik has launched a new subsidiary, MobiKwik Securities Broking Private Ltd., marking its entry into the securities broking industry. The company received approval from the Ministry of Corporate Affairs, Central Processing Centre, on March 3, 2025. This move expands MobiKwik’s financial services beyond digital payments. The parent company, One MobiKwik Systems Ltd., will hold a 100% stake in the new entity. The subsidiary will deal in shares, securities, debt instruments, commodities, currencies, and derivatives. It also plans to acquire stock exchange memberships in India and globally. Initially, MobiKwik has invested Rs 1 lakh in capital, with plans to inject an additional Rs 2 crore. The decision follows MobiKwik’s recent 3.39% stake acquisition in Blostem Fintech, a B2B banking infrastructure platform. This expansion aims to strengthen MobiKwik’s presence in the financial services sector.

1. Introduction to MobiKwik’s Business Model

MobiKwik operates as a leading fintech firm specializing in digital payments and financial services. The company offers mobile wallets, BNPL (Buy Now, Pay Later) services, and personal loans. Its revenue model relies on commissions from financial transactions, lending partnerships, and service fees. MobiKwik has received funding from investors such as Sequoia Capital and Bajaj Finance.

1.1 Expansion into Securities Broking

MobiKwik’s new subsidiary will offer securities trading, broadening its financial services portfolio. The firm aims to compete with established players like Zerodha and Groww by leveraging its extensive customer base and digital expertise.

2. Regulatory Approval and Business Scope

MobiKwik received approval from the Ministry of Corporate Affairs to launch its broking entity. The subsidiary will handle stock trading, debt instruments, commodities, and derivatives. It plans to register with major stock exchanges in India and potentially overseas markets.

2.1 Shareholding Structure

One MobiKwik Systems Ltd. will fully own the new entity. This structure ensures direct control over the operations and strategy of the broking division.

2.2 Capital Infusion Plans

The initial paid-up capital stands at Rs 1 lakh. MobiKwik has committed an additional Rs 2 crore in multiple phases to scale operations and regulatory compliance.

3. MobiKwik’s Background and Industry Position

MobiKwik was founded by Bipin Preet Singh and Upasana Taku in 2009. Initially launched as a digital wallet, the platform evolved into a full-fledged financial services provider. It serves over 140 million users and partners with various banks and NBFCs.

3.1 Recent Financial and Strategic Moves

In February 2025, MobiKwik acquired a 3.39% stake in Blostem Fintech, a B2B platform for fixed deposit aggregation. This acquisition aligns with MobiKwik’s expansion into wealth management and investment services.

4. Competitive Landscape and Market Impact

The stock broking industry in India is highly competitive, with major players such as Zerodha, Upstox, and Angel One. MobiKwik’s entry is expected to disrupt the market by offering seamless integration with its existing financial services.

4.1 Fintech Expansion in Broking Sector

Several fintech firms have recently expanded into securities trading. Companies like Paytm Money and PhonePe Wealth have launched broking services to diversify their revenue streams.

4.2 Advantages of MobiKwik’s Entry

• Existing User Base: MobiKwik’s 140 million+ users can transition into stock trading seamlessly.
• Tech Integration: The platform can integrate stock trading with digital payments and BNPL services.
• Lower Customer Acquisition Cost: Existing financial service users can be onboarded with minimal marketing expenses.

5. Future Outlook and Strategic Plans

MobiKwik aims to scale its broking business by acquiring regulatory memberships and expanding its investment product offerings.

5.1 Potential Partnerships

MobiKwik may collaborate with financial institutions to enhance its broking services. Partnerships with banks and NBFCs could drive customer engagement and credibility.

5.2 International Expansion Plans

The company has hinted at global expansion by acquiring overseas exchange memberships. This move aligns with its broader vision of becoming a diversified financial services player.

6. Learning for Startups and Entrepreneurs

6.1 Leveraging Existing Customer Base

Expanding into new services is easier for companies with a loyal user base. Startups should prioritize customer retention to ensure long-term scalability.

6.2 Strategic Capital Allocation

MobiKwik’s phased capital infusion highlights the importance of planned investments. Startups should allocate funds in tranches to manage risks effectively.

6.3 Regulatory Compliance is Critical

Entering regulated sectors like stock broking requires legal approvals. Startups must navigate compliance processes before expanding into such industries.

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