Flipkart Gets Green Light! Walmart-Backed Giant to Offer Direct Loans In India: Report

Flipkart has secured a lending licence from the Reserve Bank of India (RBI), the banking regulator and the central bank of India, enabling it to offer loans to customers and sellers on its platform.

This is the first time that the central bank has granted a large e-commerce player in India a non-banking finance company (NBFC) licence.

What Does This Change For Flipkart?

This means that Flipkart is now allowed to rent directly but it cannot take deposits.

With a lending licence, Flipkart is now enabled to lend directly, which is a more lucrative model for India's largest e-commerce firm.

The certificate of registration recognising Flipkart as a non-banking finance company (NBFC)was issued by the Reserve Bank of India on March 13, according to a Reuters report.

Flipkart is company which is backed by a US retail giant, Walmart as it holds an 80% stake in the e-commerce firm.

The company had applied for the license in 2022, according to the approval letter of the central bank.

According to the report, the e-commerce giant may start its lending operations in a few months.

The final decision of the launch will be subject to several internal processes and their completion like the appointment of key management personnel and board members and the finalisation of business plans.

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