Strategic Expansion into the Securities Market
Fintech company MobiKwik has formed a new subsidiary, Mobikwik Securities Broking Private Ltd., after receiving approval from the Ministry of Corporate Affairs, Central Processing Centre, on March 3, 2025.
The establishment of this new subsidiary represents a significant milestone in MobiKwik’s growth trajectory as it diversifies its service portfolio. The approval from the Ministry of Corporate Affairs, Central Processing Centre, provides the necessary regulatory foundation for the company to formally enter the securities broking space.
This strategic move comes at a time when the Indian fintech landscape is evolving rapidly, with many digital payment companies expanding their offerings to provide comprehensive financial services under a single platform.
The move marks the fintech company’s entry into the securities broking market and expands its offerings beyond its core focus on digital payments and financial services.
By venturing into the securities broking domain, MobiKwik is positioning itself to capture a larger share of its users’ financial activities. This expansion represents a natural progression for the company, which has already established a strong presence in the digital payments ecosystem.
The entry into stock broking will allow MobiKwik to offer its existing customer base a more diverse range of financial services, potentially increasing user engagement and creating new revenue streams beyond its traditional payment processing business.
Regulatory Approval and Shareholding
One MobiKwik Systems Ltd announced the incorporation of the new subsidiary on Wednesday, saying it will hold a 100% stake in Mobikwik Securities Broking Private Ltd.
The parent company’s announcement of full ownership in the new subsidiary indicates MobiKwik’s commitment to maintaining complete control over this strategic expansion. By holding a 100% stake, One MobiKwik Systems Ltd ensures alignment between the new broking business and its existing operations.
This ownership structure also provides the parent company with the flexibility to shape the subsidiary’s business model and growth strategy in accordance with its overall corporate vision without having to navigate complex shareholder dynamics.
The company said in its filing that the subsidiary will deal in shares, stocks, securities, debt instruments, commodities, currencies and their derivatives. It also plans to acquire memberships in stock and commodity exchanges in India and potentially other markets.
The comprehensive scope of financial instruments outlined in the filing demonstrates MobiKwik’s ambitious vision for its securities broking business. By covering shares, stocks, securities, debt instruments, commodities, currencies, and their derivatives, the company is positioning its new subsidiary to serve diverse investor preferences and needs.
The planned acquisition of memberships in stock and commodity exchanges, both in India and potentially international markets, further underscores MobiKwik’s intention to build a robust trading infrastructure capable of supporting a wide range of investment activities for its users.
Planned Capital Infusion
MobiKwik disclosed that the new subsidiary’s initial paid-up share capital is Rs 1 lakh, and plans to inject an additional Rs 2 crore in one or more tranches.
The initial capitalization structure reveals a measured approach to funding the new venture. Starting with a modest paid-up share capital of Rs 1 lakh, MobiKwik has laid the groundwork for its securities broking subsidiary while minimizing upfront costs.
The planned additional investment of Rs 2 crore, to be injected in one or more tranches, indicates a phased funding strategy that will likely align capital infusion with operational milestones and business development needs. This structured approach to capitalization reflects prudent financial management while still providing adequate resources for the subsidiary to establish its operations and meet regulatory requirements.
The new subsidiary highlights the Gurugram-based firm’s ambition to widen its reach in the financial services space. It aims to become competitive on both the Indian and global stage.
The formation of Mobikwik Securities Broking Private Ltd represents a concrete step in the company’s broader strategic vision to transform from a digital payments provider into a comprehensive financial services platform. This expansion positions MobiKwik to compete more effectively against established brokerages as well as other fintech companies that have already diversified into investment services.
By setting its sights on both Indian and global competitiveness, MobiKwik demonstrates confidence in its ability to leverage its existing technological infrastructure and customer base to build a successful securities broking business that could eventually extend beyond domestic markets.
The development comes a month after MobiKwik acquired a 3.39% stake in Blostem Fintech, a B2B banking infrastructure platform focused on fixed deposit aggregation. Registered in Delhi, it partners with multiple banks and NBFCs, integrating financial products through its API-based solutions.
The recent investment in Blostem Fintech, when viewed alongside the formation of the broking subsidiary, reveals MobiKwik’s multi-faceted approach to expanding its financial services ecosystem. The strategic stake in Blostem Fintech’s fixed deposit aggregation platform complements the move into securities broking by enhancing MobiKwik’s capabilities in fixed-income investment options.
This earlier acquisition also demonstrates MobiKwik’s interest in strengthening its B2B banking infrastructure capabilities through partnerships with multiple banks and NBFCs. The API-based integration model used by Blostem could potentially provide technological synergies with the newly formed broking subsidiary, enabling seamless integration of various financial products across MobiKwik’s expanding service portfolio.
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