In essence, this move will permit Flipkart to offer loans directly to users and sellers. The licence granted to Flipkart Finance Private Limited represents a first for the country’s e-commerce sector, as the Reserve Bank of India (RBI) has not previously authorized such permission to major online retailers.
The approval issued on the same day confirms this development. The certificate authorizes direct lending by Flipkart but excludes deposit-taking activities, setting it apart from traditional banks.
Direct Lending Plans and Internal Preparations
According to a source familiar with the matter cited by Reuters, Flipkart aims to start offering loans within months, contingent on finalizing internal preparations. These include appointing key personnel, establishing its board, and defining the strategic framework for lending operations.
The company plans to extend credit through its primary shopping platform and financial services app, super.money. It also intends to provide working capital or other forms of financing to sellers operating on its marketplace. Currently, Flipkart personal loans are issued in partnership with financial institutions like Axis Bank and Credit Saison.
Flipkart initially applied for the NBFC licence in 2022. This approval coincides with a broader structural shift within the firm. Its holding company is being re-registered in India as part of a long-term plan that could include an initial public offering. During its last valuation at USD 37 billion in a 2024 funding round, Walmart increased its investment in the business.
In contrast, Flipkart’s primary competitor, Amazon, recently acquired non-bank lender Axio. However, that deal is still pending RBI approval.