Flipkart becomes first major e-commerce firm in India to receive direct lending licence

Flipkart has secured approval from the Reserve Bank of India (RBI) to operate as a non-banking financial company (NBFC), marking the first time the central bank has granted such a licence to a major e-commerce player in the country.

According to documents reviewed by Reuters and a source familiar with the matter, Flipkart can now offer loans directly to customers and sellers on its platform without relying on partnerships with banks or other NBFCs.

While many e-commerce firms currently facilitate credit through tie-ups, Flipkart’s new licence gives it autonomy in lending — a move expected to significantly boost its profitability.

The RBI granted Flipkart Finance Private Limited its official NBFC registration on March 13, as confirmed by both the certificate and the approval letter. The development had not been reported publicly until now.

Backed by Walmart, which owns more than 80% of the company, Flipkart reportedly applied for the NBFC licence back in 2022. A final timeline for launching its lending services will depend on the completion of key internal processes, including appointing senior management, finalising the board, and solidifying its operational roadmap.

A person familiar with Flipkart’s plans revealed that the company may begin lending activities within a few months, offering credit via its main e-commerce platform as well as through its fintech app, super.money. The company is also expected to provide financing to its network of sellers, reported Reuters.

Currently, Flipkart provides personal loans through collaborations with Axis Bank, IDFC Bank, and Credit Saison. The newly acquired NBFC status will enable the company to bypass intermediaries, opening the door to a more integrated and profitable financial ecosystem.

In 2024, Flipkart was valued at $37 billion after raising $1 billion in a Walmart-led funding round. The e-commerce leader is in the process of relocating its holding company from Singapore to India, a strategic move ahead of a planned initial public offering (IPO).

Walmart’s acquisition of Flipkart in 2018 also brought fintech company PhonePe under its umbrella. PhonePe is now independently preparing for an IPO as well.

Meanwhile, Flipkart’s rival Amazon recently moved to acquire Bengaluru-based NBFC Axio. However, that deal is still awaiting regulatory clearance from the RBI.