Mobikwik Enters Securities Broking with New Subsidiary

Mobikwik is now making an entry into the securities broking industry through the establishment of its fully owned subsidiary, Mobikwik Securities Broking Private Limited (MSBPL). This significant step has been confirmed with the approval granted by the Ministry of Corporate Affairs, as revealed in a recent submission to the National Stock Exchange (NSE).

Expanding Financial Services Portfolio

With its new venture, Mobikwik targets to enhance its financial services offerings by incorporating stock and commodity brokerage services. The disclosure indicated that MSBPL will be involved in trading various financial instruments, including shares, stocks, securities, debt instruments, commodities, currencies, and derivatives.

Membership Plans and Initial Investment

The subsidiary intends to gain memberships with stock and commodity exchanges both domestically in India and on an international level. Mobikwik Securities Broking Private Limited has been initiated with a starting capital of Rs 1 lakh, while the parent firm plans to inject an extra Rs 2 crore in one or more funding phases.

Entering a Competitive Market

This initiative places the company within the competitive stock broking sector, which is already populated by established names like Zerodha, Groww, and AngelOne. Presently, Groww holds the leading position with the largest number of active users, followed closely by Zerodha, AngelOne, Upstox, and ICICI Direct.

User Growth and Financial Performance

Mobikwik’s registered user count has surged to 172 million, complemented by a network of 5 million merchants, as reported in the last quarter. The company’s payment Gross Merchandise Value (GMV) has doubled year-on-year, reaching Rs 29,400 crore. In the third quarter of the current fiscal year, Mobikwik disclosed revenue of Rs 269 crore, alongside losses amounting to Rs 55.2 crore during the same timeframe.

Market Performance

As of now, Mobikwik’s shares are trading at Rs 308 each, showcasing a total market capitalization of Rs 2,393 crore (around $278 million). Notably, the company experienced a 52-week low of Rs 231 on March 17.