Walmart-owned e-commerce platform Flipkart has received a Non-Banking Financial Company (NBFC) license from the Reserve Bank of India (RBI). This development enables Flipkart to offer loans directly to customers and sellers on its platform. This is the first time the RBI has granted an NBFC license to a major e-commerce player in India, allowing them to offer loans, although they are not authorized to accept deposits.
RBI Issues Registration Certificate
Currently, most e-commerce platforms collaborate with banks and NBFCs to provide loans. However, with this new license, Flipkart, India’s largest e-commerce company, will be able to issue loans directly to its customers. On March 13, the central bank issued a registration certificate to Flipkart Finance Private Limited, officially recognizing the company as an NBFC.
Application Submitted in 2022
According to the approval letter from the RBI, Flipkart applied for the license in 2022. Walmart holds over 80% of the equity in Flipkart. A source familiar with the matter mentioned that Flipkart could begin its lending operations “within a few months.” The final decision on the launch will depend on various internal processes, including the appointment of key management personnel, board members, and finalizing business plans.
What Are the Company’s Plans?
Flipkart plans to offer direct loans to its customers through its popular e-commerce platform as well as its fintech app, super.money. According to reports, the company may also extend funding to sellers on its platform. Currently, the e-commerce giant provides personal loans to customers through partnerships with lenders like Axis Bank, IDFC Bank, and Credit Saison.
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