Walmart’s Flipkart has received permission from India’s central bank to lend money directly to its customers and sellers. This means Flipkart can now offer loans on its own without working with other banks or lending companies.
This is the first time the Reserve Bank of India (RBI) has given such a license to a big e-commerce company like Flipkart. The license, called an NBFC license, allows Flipkart to lend money but not accept deposits like a regular bank.
Usually, e-commerce companies offer loans through partnerships with banks or other lenders. But now Flipkart can do this by itself, which can help the company earn more money.
The RBI officially gave this license to Flipkart Finance Private Limited on March 13. Flipkart applied for this license in 2022.
Flipkart has not yet commented on this news. The company may start offering loans directly in a few months, but first it needs to finish some internal steps like hiring important managers and making final business plans.
Flipkart will give loans on its popular shopping website and through its finance app called super.money. It may also lend money to the sellers who sell products on its platform.
Right now, Flipkart offers personal loans by working with banks like Axis Bank, IDFC Bank, and Credit Saison.
Flipkart is one of India’s biggest online shopping companies. It is mostly owned by Walmart, which bought most of the company in 2018. Flipkart is planning to move its main company from Singapore to India and may become a public company soon.
Flipkart’s rival, Amazon, recently bought a small lending company but still needs approval from the RBI to start lending directly.
