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Flipkart Secures RBI NBFC Licence to Offer Direct Loans

The move lets the Walmart-backed e-commerce firm bypass banks as it finalises internal approvals ahead of launching direct lending services.

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Flipkart Sale | Image: Shutterstock
Flipkart gets RBI nod to lend directly, becomes first Indian e-com giant with NBFC licence

Overview

  • On March 13 the RBI issued a certificate of registration to Flipkart Finance Private Limited, recognising it as an NBFC authorised to lend directly to platform customers and sellers without taking deposits.
  • Flipkart plans to begin offering loans through its e-commerce site and super.money app within months, pending key management appointments and finalisation of lending models.
  • The licence enables Flipkart to move away from partnerships with Axis Bank, IDFC Bank and Credit Saison toward a more profitable direct-lending model.
  • As part of its growth strategy, Flipkart is relocating its holding company from Singapore to India and preparing for a public listing.
  • Amazon’s acquisition of non-bank lender Axio is still awaiting RBI approval, giving Flipkart a first-mover advantage in e-commerce-led digital lending.