Guwahati: Flipkart, India's biggest e-commerce portal that is funded by Walmart, has received a lending licence from the Reserve Bank of India (RBI), a first in the nation's digital retail and lending space. The RBI sanction in March 2025 formally recognizes Flipkart Finance Private Limited as a non-banking financial company (NBFC).
This move enables Flipkart to lend directly to consumers and sellers, cutting out the existing model of using partner banks and NBFCs. While online commerce sites such as Flipkart have so far provided personal loans and EMI facilities through tie-ups with institutions such as Axis Bank, IDFC Bank, and Credit Saison, this is the first instance of a large Indian e-commerce firm being issued an NBFC licence to provide credit on their own.
"This step allows Flipkart to reach deeper into consumers' pockets through more flexible financing models and broadens its fintech presence through its digital platform and the super Money app," said one person who is knowledgeable about the development. The company is also likely to provide financing options to sellers on its platform, further strengthening its marketplace ecosystem.
RBI issued the certificate of registration on March 13. Flipkart still has to do a number of internal formalities, such as appointment of key managerial personnel and finalization of its lending business strategy, before launching full-fledged operations.
The move is made at a time when Flipkart announced that it was relocating its holding company from Singapore to India a process the company portrayed as a reiteration of its "deep and unwavering commitment to India." A spokesperson for Flipkart previously pointed out, "This move aligns our corporate structure with our operations and the monstrous potential of the Indian economy."
Flipkart, now worth $37 billion, is also getting ready for an initial public offering (IPO), as is its once subsidiary PhonePe. Walmart, that bought a majority stake in Flipkart in 2018, has more than 80 percent ownership of the company now.
In a parallel move, Amazon also has its sights on a position in the Indian lending sector. It recently bought Bengaluru-headquartered NBFC Axio, though the deal is pending regulatory clearance from the RBI. With this license, Flipkart is set to redefine the e-commerce credit landscape, marking a significant shift towards bundled digital financing in India.
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