Flipkart has secured a lending licence from the Reserve Bank of India (RBI), As per a report on Reuters. This will allow the e-commerce platform to lend money directly to customers and sellers on its platform.
With this, Flipkart becomes the first-ever Indian e-commerce platform to have a non-bank finance company (NBFC) licence, allowing it to lend but not take deposits. Currently, platforms rely on partnerships with banks and non-bank lenders to offer loans.
RBI grants NBFC licence to Flipkart Finance
According to Reuters, the RBI issued a certificate of registration to Flipkart Finance Private on March 13, officially recognising it as a non-banking financial company (NBFC). Reuters reviewed a copy of the certificate and the central bank’s approval letter.
While Flipkart can now offer loans, the licence does not allow it to accept deposits from the public.
Flipkart plans to begin lending in a few months
Flipkart, which is majority-owned by U.S. retail giant Walmart, applied for the licence back in 2022. Reuters reports, citing a source aware of the matter, that Flipkart could begin its lending operations within the next few months.
A final launch decision will depend on completing several internal steps, including appointing key management, setting up a board, and finalising its business plans. “The e-commerce giant may commence its lending operation in a few months,” the source told Reuters, requesting anonymity as the discussions are private.
Lending through Flipkart and fintech app super.money
According to Reuters, Flipkart intends to offer loans directly through its main e-commerce platform as well as its fintech app called super.money. The company is also exploring loan offerings for its sellers, in addition to customers.
Currently, Flipkart provides personal loans through tie-ups with financial institutions like Axis Bank, IDFC Bank, and Credit Saison. With the new licence, Flipkart will be able to shift to a more lucrative direct-lending model.
Part of a bigger transformation for Flipkart
This development comes at a time when Flipkart is making key structural changes. The company, last valued at $37 billion in 2024 after a $1 billion funding round led by Walmart, is relocating its holding company from Singapore to India. Walmart, which bought a majority stake in Flipkart in 2018, also plans to take the company public.
Walmart’s acquisition of Flipkart also gave it ownership of fintech firm PhonePe, which is also preparing for an IPO.
Amazon eyes lending space too
Flipkart’s move into direct lending comes amid growing interest from other e-commerce rivals. Earlier this year, Amazon acquired Bengaluru-based non-bank lender Axio. However, that deal is still awaiting approval from the RBI.
Flipkart and the RBI have not yet responded to Reuters’ requests for comment.