MobiKwik Gets RBI In-Principle Nod for Offline Payments

Fintech major MobiKwik has achieved a significant regulatory milestone, securing an in-principle approval from the Reserve Bank of India (RBI) to operate as a payment aggregator-physical (PA-P). This crucial development positions MobiKwik for substantial expansion within the burgeoning offline merchant business sector, marking a strategic pivot towards strengthening its presence in India’s diverse digital economy, particularly in under-penetrated markets beyond major urban centers. The approval underscores the company’s commitment to building a robust, compliant, and scalable payment acceptance infrastructure, essential for facilitating seamless offline commerce across the nation.

MobiKwik’s Strategic Push into Offline Commerce and Growth Projections

The in-principle PA-P license is a critical enabler for MobiKwik to significantly deepen its footprint in the offline payments landscape. Upon receiving the final approval, the company will be empowered to expand its business operations by providing secure and efficient payment aggregation services to a vast network of physical merchants. This move is particularly strategic given the immense growth potential in India’s offline digital payment ecosystem, which continues to evolve rapidly with increasing adoption of digital transactions even in smaller towns and rural areas.

Bipin Preet Singh, cofounder, managing director, and CEO of MobiKwik, highlighted the strategic importance of this approval, stating, “Offline merchant payments are emerging as one of the strongest growth drivers within India’s digital economy, particularly across under-penetrated markets beyond urban India. This PA-P approval strengthens our ability to scale merchant payments infrastructure across the country and sets us up for 10x growth in merchant business by FY28.” This ambitious projection reflects the company’s confidence in leveraging the new license to capture a significant share of the expanding offline market.

Broadening Regulatory Approvals and Business Diversification Initiatives

This latest approval from the RBI marks the second key regulatory clearance for MobiKwik within a few weeks, signaling a period of strategic regulatory compliance and business diversification for the fintech firm. In April, MobiKwik successfully secured a Non-Banking Financial Company (NBFC) license from the central bank. This NBFC license was a pivotal step, clearing the path for the company’s foray into the credit segment, thereby broadening its financial product offerings and tapping into new revenue streams within the lending ecosystem.

Further reinforcing its payment aggregation capabilities, MobiKwik’s subsidiary, Zaakpay, had previously received the RBI’s nod to operate as an online payment aggregator. This series of approvals—for offline payment aggregation, NBFC operations, and online payment aggregation—collectively demonstrates MobiKwik’s comprehensive strategy to establish itself as a multifaceted financial services provider, capable of serving both online and offline markets while expanding into credit solutions.

Navigating Allegations Amidst Corporate Growth and Regulatory Scrutiny

Despite these significant regulatory achievements and growth initiatives, MobiKwik has recently faced scrutiny concerning some of its other products. Last week, Bengaluru Police registered two First Information Reports (FIRs) against the fintech firm and its lending partner Lendbox. The allegations centered on claims of cheating investors and misusing funds via their peer-to-peer (P2P) lending platform, MobiKwik Xtra, alongside accusations of blocking customer withdrawals.

In response to these allegations, MobiKwik issued a clarification, asserting that it merely acted as a distribution partner for the P2P lending product offered by Lendbox. The company further clarified that customers had been duly informed about the RBI-mandated modifications in the P2P lending product, which were slated for implementation in August 2025. This situation highlights the complex regulatory environment and the challenges fintech companies face in ensuring full compliance and transparency across their diverse product portfolios.

Solid Financial Performance and Market Confidence in Q4 FY26

On the financial front, MobiKwik has demonstrated a robust performance, reporting a consolidated net profit of ₹4.4 crore in Q4 FY26. This represents a substantial turnaround compared to a loss of ₹56 crore recorded in the corresponding quarter of the previous fiscal year. The company’s revenue from operations also witnessed a healthy growth of 7.8%, reaching ₹288.7 crore in Q4 FY26, up from ₹267.8 crore in Q4 FY25. These figures underscore the company’s improving financial health and operational efficiency.

The positive financial results, coupled with the latest regulatory approvals, appear to have resonated favorably with investors. Shares of MobiKwik were last reported up 3.7% at ₹198.40 apiece on the BSE as of 14:30 IST on the day of the announcement. This market reaction suggests a degree of investor confidence in MobiKwik’s strategic direction and its ability to capitalize on new opportunities despite the ongoing regulatory challenges and allegations.

Outlook for MobiKwik’s Future in India’s Dynamic Fintech Landscape

The in-principle approval for the offline payment aggregator license, alongside the recently acquired NBFC license and Zaakpay’s online PA nod, strategically positions MobiKwik for accelerated growth and deeper penetration into India’s vast financial services market. These regulatory clearances are pivotal for the company to expand its merchant base, diversify its offerings into credit, and enhance its overall payment infrastructure. While the recent legal challenges present a hurdle, MobiKwik’s proactive clarifications and strong financial performance indicate its resilience and commitment to navigating the complex regulatory and competitive landscape.

As India continues its rapid digital transformation, particularly in the realm of payments and financial inclusion, MobiKwik’s ability to seamlessly integrate online and offline payment solutions, coupled with its foray into lending, will be crucial. The company’s strategic vision to achieve 10x growth in its merchant business by FY28, underpinned by these regulatory milestones, paints a picture of an aggressive expansion strategy aimed at solidifying its position as a prominent player in the Indian fintech ecosystem.