MobiKwik gets SEBI's nod for stockbroking, shares gain

Shares of One MobiKwik Systems closed higher on Thursday after the firm announced that its subsidiary, MobiKwik Securities Broking Pvt Ltd, received approval from the Securities and Exchange Board of India (SEBI) to function as a stockbroker and clearing member.

One MobiKwik Systems shares gained 2.45% to Rs 247.20 today against the previous close of Rs 241.30. Market cap of the firm rose to Rs 1931.92 crore. 

The certificate, issued on July 1, allows MobiKwik to engage in equity trades, including buying, selling, dealing, clearing, and settlement activities. This strategic move is viewed as a step towards enhancing MobiKwik's presence in the wealth distribution sector.

Co-founder and CEO Bipin Preet Singh said, "The stockbroking licence marks a significant milestone. With rising retail participation in equities, we aim to simplify investing for first-time users and move closer to our full-stack fintech vision." The development comes on the heels of MobiKwik's other regulatory achievement earlier this quarter when its Zaakpay unit received RBI approval as a payment aggregator in April. 

Established initially as a digital wallet platform, MobiKwik has evolved to serve over 176 million users and 4.6 million merchants. The company now offers a comprehensive suite of financial products, including mutual funds, fixed deposits, systematic investment plans (SIPs), digital gold, and Lens.Ai, reinforcing its foothold in the fintech landscape.

The recent approval is likely to expand MobiKwik's reach in the financial services market by enabling broader access to investment opportunities for its users. This expansion is expected to attract more retail investors, thereby contributing to the growth of the Indian stock market. MobiKwik's commitment to innovation and customer-centric services positions it well to capitalize on emerging market trends and opportunities. Furthermore, the company's strategic initiatives are set to enhance its market position, paving the way for sustained growth in the dynamic fintech sector.