Kristina Roberts
In a big step for digital finance in India, Flipkart, which is owned by the US retail giant Walmart, has received official approval to lend money directly to its users and sellers in India. This is a very important moment because it marks the first time that a major online shopping platform in the country has been given this kind of permission. Flipkart will now be able to offer loans without depending on other banks or financial companies. This was confirmed by a spokesperson from Flipkart after documents showed that the Reserve Bank of India had issued them a special licence.
Until now, online companies like Flipkart had to work with other banks or non-banking finance companies, called NBFCs, to offer loans. They acted more like a middleman, helping customers get loans from these banks. But with this new licence, Flipkart will now be able to give out loans on its own, without any partner. This new system could be much more profitable for the company and also make things faster and simpler for users. It will give Flipkart full control over the loan process, allowing it to build a stronger relationship with its buyers and sellers.
The licence given by the Reserve Bank of India officially recognizes Flipkart Finance Private Limited as a non-banking finance company. This means it can give loans, but it cannot take money from people in the form of savings or fixed deposits like regular banks. According to the documents seen, the certificate of registration and the approval letter were both dated March 13. Flipkart had applied for this licence back in 2022. The central bank has not made any public comments yet, but the information was verified by reviewing official documents.
A source who is aware of the matter and did not wish to be named shared that Flipkart may begin lending in the next few months. However, some internal steps need to be completed before everything goes live. For example, Flipkart is still in the process of hiring key management people and building a strong leadership board. The final plans are still being made, and once those are ready, the company will be in a position to begin the lending work.
This new move will allow Flipkart to lend money directly on its online shopping app and also through its finance app called super.money. According to the source, Flipkart may also provide loans to the people who sell products on its platform, not just the buyers. Right now, Flipkart already helps customers get personal loans by connecting them with banks like Axis Bank, IDFC Bank, and Credit Saison. But in those cases, Flipkart is only a bridge between the customer and the bank. With the new licence, Flipkart will become the lender itself.
In 2024, Flipkart was valued at about $37 billion after it raised $1 billion in a funding round that was led by Walmart. This shows that the company is growing and attracting investors. Flipkart is also shifting its main headquarters from Singapore to India. This is a big change, and it is seen as a step toward making the company more Indian in its structure and operations. Walmart also plans to take Flipkart public, which means they want to list the company on the stock market. If this happens, people will be able to buy and sell shares of Flipkart.
Walmart had first bought a large share of Flipkart back in 2018. This deal also included ownership of PhonePe, a well-known finance technology company in India. Now, just like Flipkart, PhonePe is also getting ready for an initial public offering, or IPO, where it will offer its shares to the public for the first time. These steps show that Walmart has big plans for its businesses in India and wants to be more deeply involved in the Indian market.
Interestingly, Flipkart is not the only one trying to grow in this direction. Earlier this year, Amazon, which is another major online shopping company, acquired a Bengaluru-based NBFC named Axio. However, that deal is still waiting for approval from the Reserve Bank of India. If cleared, it will allow Amazon to also step into the lending space in a similar way. But as of now, Flipkart has become the first big e-commerce player in the country to get this type of licence and be ready to lend directly to its users.
Getting this licence is not just a business achievement. It also shows that regulators like the Reserve Bank of India are beginning to trust big online platforms with financial responsibilities. Allowing Flipkart to become a lender means the central bank believes that the company can handle financial tasks carefully and follow the rules.
The lending system could help many people in India. For example, small business owners who sell their goods on Flipkart often need money to grow their business or manage daily operations. Flipkart’s direct loan support could make it easier for them to access funds quickly without going through traditional banks, which sometimes take a long time to approve loans. For customers, it might mean more simple and flexible ways to buy things even when they don’t have enough money right away. If Flipkart offers easy and safe loan plans, more people might feel comfortable shopping online, which could lead to more growth in the Indian digital economy.
Still, this kind of work also comes with a lot of responsibility. Lending money is a serious job. The company must be careful to make sure loans are given to the right people and that they are paid back on time. Flipkart will need to set up clear rules and strong systems to manage these loans well. This is why hiring skilled people and forming a reliable leadership team is very important at this stage.
This new development puts Flipkart in a strong position to expand beyond just selling products. It is becoming a part of the larger finance world, which could bring new challenges but also many new chances. With this, the line between shopping and banking is slowly getting thinner. As Flipkart takes this big step, all eyes will be watching to see how the company uses this opportunity and how well it serves the people of India.
