Flipkart secures NBFC license from RBI—becomes first Indian e-comm player to offer direct lending

Flipkart has received a lending licence from the Reserve Bank of India (RBI), the Walmart-backed ecommerce company confirmed on Thursday.

The nod came in March this year, according to sources.

When contacted about the grant of the NBFC licence, Flipkart confirmed the development but did not divulge any details.

The move could pave the way for Flipkart to offer loans directly to customers, sources said noting the specific instances in which the customers at times choose the EMI model or instalment mode to pay for products they choose.

However, the company’s specific plans on this, now with the NBFC licence, could not be immediately ascertained.

Walmart currently holds over 80 per cent stake in Flipkart. It had bought a majority stake in the ecommerce platform back in 2018.

In April this year, IPO-bound Flipkart had shared its intention to relocate its holding company from Singapore to India, a strategic decision that the homegrown e-commerce firm said reflects “deep and unwavering commitment to India and its remarkable growth”.

“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 had said in April.

Walmart’s Flipkart has secured a lending licence from the Indian central bank and banking regulator, enabling it to offer loans directly to customers and sellers on its platform, a spokesperson for the company confirmed after Reuters reported the development citing documents and a source.

This is the first time the Reserve Bank of India has granted a large e-commerce player in India a non-bank finance company (NBFC) licence, allowing it to lend but not take deposits.

Most e-commerce platforms currently offer loans in tie-ups with banks and NBFCs, but a lending licence will enable Flipkart – India’s largest e-commerce firm – to lend directly, a more lucrative model for the group.

The central bank issued its certificate of registration – a document that officially recognizes a company as an NBFC – to Flipkart Finance Private Limited on March 13.

Reuters has reviewed a copy of both the certificate of registration and the approval letter also dated March 13. The approval has not been previously reported.

Flipkart, in which U.S. retail behemoth Walmart holds a more than 80% stake, applied for the licence in 2022, according to the central bank’s approval letter.

The Reserve Bank of India did not immediately respond to Reuters’ request for comments.

The e-commerce giant may commence its lending operation “in a few months”, according to a source aware of the matter who declined to be identified as the talks are private.

A final decision on the launch will be subject to the completion of various internal processes such as the appointment of key management personnel and board members and the finalisation of business plans, the source said.

Flipkart plans to lend directly to its customers on its popular e-commerce platform and through its fintech app super.money, the source said. It may also offer financing to sellers on the platform, they added.

At present, the e-commerce giant offers personal loans to customers through tie-ups with lenders such as Axis Bank, IDFC Bank and Credit Saison.

Flipkart, last valued at $37 billion in 2024 when it raised $1 billion in a funding round led by Walmart, is shifting its holding company from Singapore to India. Walmart also aims to take the 17-year-old company public.

Walmart bought a controlling stake in Flipkart in 2018, which also gave it ownership of PhonePe, a fintech firm also preparing for an IPO.

Earlier this year Flipkart’s rival Amazon acquired a Bengaluru-based non-bank lender Axio, but the deal is yet to be cleared by the central bank.