Walmart-backed Flipkart has become the first major Indian e-commerce company to receive a non-banking financial company (NBFC) license from the Reserve Bank of India, allowing it to lend directly to consumers and sellers. This move enables Flipkart to operate independently in the lending space, potentially boosting profitability and expanding its fintech offerings. The development intensifies competition with Amazon, which is also strengthening its financial services in India through the acquisition of lending startup Axio. Flipkart’s lending operations are expected to launch soon, pending internal preparations.
Key Takeaways
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Flipkart is the first major Indian e-commerce firm to secure an NBFC license, enabling direct lending to customers and sellers.
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The license allows Flipkart to offer loans independently, marking a significant shift from traditional partnerships with banks.
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Amazon is also expanding in India’s financial sector by acquiring fintech lender Axio, increasing competition in digital finance.
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