Walmart's Flipkart is now able to provide loans directly to buyers and sellers on its marketplace after obtaining a lending license from the Indian central bank and banking regulator.

For the first time, a major Indian e-commerce company has been awarded a non-bank financing company (NBFC) license by the Reserve Bank of India, which permits it to provide loans but not accept deposits.

With a lending license, Flipkart, the biggest e-commerce company in India, will be allowed to lend directly, which would be a more profitable business model for the group than the majority of e-commerce platforms that presently offer loans through partnerships with banks and NBFCs.

Flipkart Finance Private Limited received the central bank's certificate of registration, which formally acknowledges a business as an NBFC.

In a few months, the e-commerce behemoth might start lending money.

The conclusion of several internal procedures, including the appointment of important management staff and board members and the development of business strategies, will precede a final decision regarding the launch.

Flipkart intends to provide direct loans to its clients through its well-known e-commerce site and its fintech application, super.money. Additionally, it might provide platform merchants with finance.

The e-commerce behemoth already provides consumers with personal loans through partnerships with lenders including Axis Bank, IDFC Bank, and Credit Saison.

 

Flipkart is moving its holding company from Singapore to India. The company was last valued at $37 billion in 2024, when it raised $1 billion in a capital round backed by Walmart. Additionally, Walmart wants to go public with the 17-year-old business.

In 2018, Walmart acquired a majority share in Flipkart, granting them control over PhonePe, a fintech company that was also getting ready for an initial public offering.

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The central bank has not yet approved the acquisition of Bengaluru-based non-bank lender Axio by Flipkart's rival Amazon earlier this year.