In essence, this move will allow Flipkart to offer loans directly to users and sellers. The licence issued to Flipkart Finance Private Limited marks the first such authorization for a major online retailer in the country, as the Reserve Bank of India (RBI) had not previously granted similar approval.
The certificate of registration confirms that Flipkart can now lend directly but cannot accept deposits, operating on a model distinct from traditional banks. The document also includes an approval letter dated the same day.
Plans for Direct Lending and Internal Preparations
According to a source familiar with the matter cited by Reuters, Flipkart aims to start offering loans within a few months after finalizing its internal preparations. These include appointing key personnel, constituting its board, and completing the strategic framework for its lending operations.
The company plans to issue credit through its primary shopping platform and its financial services app, super.money. It may also provide working capital or other forms of financing to sellers operating on its marketplace. Currently, Flipkart extends personal loans to users via partnerships with financial institutions like Axis Bank and Credit Saison.
Strategic Shift and Future Plans
Flipkart initially applied for the NBFC licence in 2022. The approval comes as part of a broader structural shift, including the relocation of its holding company from Singapore to India. This longer-term plan may culminate in a potential initial public offering (IPO). In 2024, Flipkart was valued at USD 37 billion during a funding round that saw Walmart increase its investment in the business.
In comparison, Amazon, Flipkart’s main competitor in the Indian market, recently acquired non-bank lender Axio. However, this deal is still awaiting regulatory clearance from the RBI.
