The certificate and accompanying approval letter confirm this change. Flipkart Finance Private Limited now holds the license to lend directly to users and sellers but is restricted from accepting deposits, distinguishing its operational model from traditional banks.
Plans and Preparations
According to a Reuters source familiar with the matter, Flipkart aims to launch direct lending services within months. However, the exact timeline hinges on finalizing internal preparations, which include appointing key personnel, setting up its board, and crafting strategic frameworks for its lending operations.
These services will be provided through Flipkart’s primary shopping platform and its financial services app, super.money. Flipkart also plans to offer working capital or other types of financing to sellers operating on its marketplace. Currently, the company extends personal loans to users via partnerships with financial institutions such as Axis Bank and Credit Saison.
The approval follows an initial application by Flipkart in 2022 during a period when the firm is undergoing broader structural changes. Its holding company has been relocated from Singapore to India, part of plans that include potential public offerings. Flipkart’s latest valuation was around USD 37 billion during its last funding round, which included increased investment from Walmart.
In comparison, Amazon – Flipkart’s main competitor in India – recently acquired non-bank lender Axio. However, this deal is still pending approval from the RBI.