Flipkart Secures RBI Lending Licence
- Flipkart receives NBFC licence from the Reserve Bank of India, allowing it to lend directly.
- The move enables Flipkart to offer loans to customers and sellers without third-party banks.
- Flipkart is shifting its base to India ahead of its IPO and expanding fintech services via super.money.
In a groundbreaking development for India’s digital commerce sector, Walmart-owned Flipkart has been granted a non-banking finance company (NBFC) licence by the Reserve Bank of India (RBI), enabling it to directly lend to customers and sellers on its platform. This marks the first instance of a major e-commerce player receiving such a licence, shifting Flipkart's lending model from partnerships to direct financing.
The RBI issued the Certificate of Registration to Flipkart Finance Private Limited on March 13, officially recognising it as an NBFC. Documents reviewed by Reuters and a source familiar with the matter confirm that the central bank's approval was granted the same day. Flipkart had originally applied for the licence back in 2022.
Currently, most e-commerce firms in India offer credit to customers and vendors through alliances with banks and financial institutions. With the NBFC licence, Flipkart India’s largest online retailer – will gain the ability to extend credit independently. This could significantly boost the company’s revenue potential while enhancing user and seller engagement across its ecosystem.
According to sources, Flipkart may roll out its lending services within the next few months, subject to internal operational formalities, including the appointment of board members and finalisation of business strategies. The company is expected to facilitate loans via its primary shopping platform and its fintech arm, super.money. Additionally, financing options may also be extended to sellers operating on Flipkart’s platform.
At present, Flipkart provides personal loans through third-party partnerships with financial entities such as Axis Bank, IDFC First Bank, and Credit Saison. The NBFC status will allow it to bypass intermediaries, thereby offering more competitive financial products.
This development comes as Flipkart continues to expand its presence in India. In 2024, it was valued at $37 billion following a $1 billion funding round led by Walmart. The e-commerce giant is also transitioning its holding company from Singapore to India in preparation for an IPO.
Walmart, which acquired a controlling stake in Flipkart in 2018, also owns PhonePe Flipkart’s former payments arm which is separately gearing up for a public listing.
