Flipkart secures RBI licence to lend directly to customers

New Delhi: Flipkart has obtained a non-banking financial company (NBFC) licence from the Reserve Bank of India (RBI), a move that will allow the e-commerce platform to extend loans directly to its customers. The Walmart-backed firm confirmed the development on Thursday, adding that the licence was granted in March this year.

The authorisation marks a first for India’s e-commerce sector, as Flipkart becomes the only major online retailer to receive an NBFC licence from the central bank. While many e-commerce platforms currently facilitate lending through partnerships with banks and existing NBFCs, Flipkart's new status will enable it to offer credit independently, though it will not be permitted to accept deposits.

Sources familiar with the development said the licence could allow the company to support customers opting for equated monthly instalments (EMIs) or deferred payment options for purchases made on its platform.

The RBI issued the certificate of registration to Flipkart Finance Private Limited on March 13. A final decision on when the lending operations will begin is pending completion of several internal processes, including the appointment of key management personnel, constitution of the board, and finalisation of business plans.

Reuters reported that Flipkart intends to provide credit via its main e-commerce platform and through its fintech application, super.money. It may also extend credit to sellers operating on its marketplace. Currently, Flipkart offers personal loans in collaboration with financial institutions such as Axis Bank, IDFC Bank, and Credit Saison.

This development comes amid Flipkart’s broader efforts to localise its operations. In April, the company announced plans to shift its holding entity from Singapore to India. The move precedes a potential initial public offering (IPO) and is seen as part of the firm’s strategy to align more closely with the Indian market.

"We are inspired by the Government of India's strong vision and proactive initiatives in fostering a thriving business environment and ease of doing business, which have significantly shaped our journey. This move represents a natural evolution, aligning our holding structure with our core operations, the vast potential of the Indian economy and our technology and innovation-driven capabilities to foster digital transformation in India," a Flipkart spokesperson said in a statement at the time.

Walmart, which acquired a majority stake in Flipkart in 2018, currently owns more than 80 per cent of the company. Flipkart was last valued at $37 billion in 2024 following a $1 billion fundraising round led by Walmart. The US-based retail giant is also preparing Flipkart and its digital payments subsidiary PhonePe for public listings.

Earlier this year, rival Amazon announced the acquisition of Bengaluru-based NBFC Axio. However, the deal is still awaiting regulatory approval from the RBI.