Key Highlights

• Flipkart secures RBI NBFC license, enabling direct lending to customers and sellers via super.money.
• Walmart-backed Flipkart becomes first major Indian e-commerce firm authorized for independent lending operations.

Walmart's Flipkart has successfully obtained a lending license from the Reserve Bank of India (RBI), allowing it to provide loans directly to customers and sellers on its platform. According to Reuters, this is the first time a major e-commerce platform in India has been granted a non-bank finance company (NBFC) license, a significant step forward in the financial services sector.

The license, issued on March 13, allows Flipkart to provide loans without the ability to accept deposits, paving the way for a more integrated financial solution delivered directly through its platform. This development is expected to improve Flipkart's ability to provide tailored financial products to its large user base, potentially changing the face of e-commerce in India.

Currently, most e-commerce companies, including Flipkart, offer personal loans through partnerships with banks like Axis Bank and IDFC. However, this new license will allow Flipkart to shift to a more profitable direct lending model. According to sources, Flipkart plans to offer loans directly through its e-commerce site and fintech app, super.money, as well as extend financing options to sellers. The start of these operations is expected in a few months. This strategic shift could result in a more seamless experience for users, who will be able to access financial services directly through the same platform they use to shop.

Flipkart, valued at $37 billion after a $1 billion funding round led by Walmart in 2024, hopes to improve its financial services capability through this license. This strategic move also helps Walmart's plans to take Flipkart public. The e-commerce behemoth, which is relocating its holding company from Singapore to India, has been a critical component of Walmart's portfolio since it acquired a controlling stake in 2018. This move is part of a larger strategy to consolidate its operations in India while adhering to local regulations and market dynamics.

Also Read: Super.money Backed by Flipkart Acquires a Checkout Financing Platform BharatX

Competition in the sector is increasing, with rivals such as Amazon entering the financial domain. Amazon purchased Axio, a non-bank lender based in Bengaluru, earlier this year, but the transaction is still pending central bank approval. Flipkart's new licence may give it a competitive advantage by streamlining its lending operations and potentially increasing profitability. This competitive landscape emphasizes the growing importance of financial services as a differentiator in the e-commerce sector.

The RBI's approval follows Flipkart's application in 2022, indicating a growing trend of integrating financial services into e-commerce platforms. The company is currently finalizing internal processes and appointing key management personnel to ensure a successful launch of its lending operations. The official launch is still contingent on these preparations. This meticulous planning demonstrates the complexities and importance of launching financial services on a retail platform.

As Flipkart prepares to launch direct lending services, this development represents a larger shift in how Indian e-commerce companies use financial licenses to broaden their service offerings. This move could have a significant impact on the landscape of online retail, giving consumers more flexible financial options and improving the overall customer experience on digital platforms. Financial services integration is poised to become a key component of e-commerce giants' value proposition, with the potential to set new standards for customer engagement and satisfaction.