MobiKwik gets RBI approval to launch NBFC, shares jump 14.02%
MobiKwik just got the go-ahead from the Reserve Bank of India to become a nonbank financial company (NBFC).
This means they can launch their own lending arm, MobiKwik Financial Services Private Limited, and start offering loans directly to users and merchants.
Investors seemed pretty happy about it, with MobiKwik's shares shooting up 14.02% after the news.
MobiKwik to use AI for credit
With the new NBFC license, MobiKwik plans to use AI and machine learning to offer more personalized credit products, especially in smaller cities.
co-founder and executive director at MobiKwik Upasana Taku called this move a "The NBFC application approval is a pivotal step in MobiKwik Group's evolution into a scaled financial services platform," saying it'll help them reach more people and improve their services across India.
The company is also looking at faster product launches and better access to funding through partnerships, all under the RBI's watchful eye.