Whalesbook
NBFC License Unlocks MobiKwik's Lending Future
MobiKwik shares surged as much as 20% on April 27, 2026, after receiving its Non-Banking Financial Company (NBFC) license from the Reserve Bank of India. This approval marks a strategic shift, allowing the fintech firm to operate a lending division directly through its subsidiary, MobiKwik Financial Services. The move will significantly boost its ability to create new credit products and reach more customers and merchants, using its large user base. The stock hit an intraday high of about ₹241.90, showing investor confidence in new revenue streams and expanded financial services.
Peak XV Completes Exit as MobiKwik Expands
On the same day, early investor Peak XV Partners fully exited MobiKwik, selling its 7.7% stake for over ₹130 crore. Peak XV is now the last private equity fund to leave MobiKwik's ownership structure, after Abu Dhabi Investment Authority exited in September 2025. This investor exit, coming just after the key NBFC license news, suggests Peak XV is cashing in on its investment. It marks the end of an investment cycle for Peak XV, as MobiKwik moves to become a more integrated financial services firm, which could require more capital.
MobiKwik's Valuation and Fight Against Paytm
MobiKwik, valued around ₹1,770 crore as of April 27, 2026, has a negative trailing twelve-month Price-to-Earnings (P/E) ratio, showing it's still working towards consistent profits. The stock has seen strong short-term gains, rising over 30% last month, but is still down since its December 2024 listing. Compared to rival Paytm, MobiKwik has a smaller user base, Gross Merchandise Value (GMV), and merchant network, with much lower reported revenue in FY24. However, MobiKwik reported its first net profit and positive EBITDA in FY24, a target Paytm hasn't yet met, though Paytm's losses have narrowed. MobiKwik's price-to-sales ratio looks more attractive than Paytm's, suggesting value if its new lending arm drives significant earnings growth.
Challenges Ahead: Profitability and Debt
Despite the positive momentum from the NBFC license, MobiKwik faces significant hurdles. Its negative P/E ratio and negative Return on Equity (ROE) over the past three years point to continuing profit challenges. The company uses more debt, with a debt-equity ratio of 0.73x compared to its larger rival Paytm's 0.01x. The success of its lending arm is crucial, but it enters a competitive space with established players and likely more regulatory oversight. Also, a low promoter holding of about 25% is an investor concern. Recent quarterly results show mixed performance, with a profit in Q3 FY25 but a wider loss in Q2 FY25, indicating unstable earnings.
Analyst Sees Major Upside Potential
Looking ahead, one analyst rates MobiKwik a 'Strong Buy' with a 12-month price target of ₹400. This target suggests substantial upside from current trading levels. The NBFC license is a game-changing development, positioning MobiKwik to directly earn from its large user base through credit products. If MobiKwik can successfully run its lending business and compete effectively, becoming a full financial services platform could fuel sustained growth.