In A First, Flipkart Secures RBI Approval for Direct Lending in India

In a major development that marks a turning point for India's digital economy and the e-commerce sector, Flipkart has secured a lending license from the Reserve Bank of India (RBI), making it the first large e-commerce platform in the country to be granted a non-banking financial company (NBFC) license. This move allows Flipkart to directly lend to its customers and sellers, bypassing third-party banking partners and creating a more profitable financial model.

According to official documents reviewed by Reuters, the RBI issued a certificate of registration to Flipkart Finance Private Limited on March 13, 2025. This document officially recognizes Flipkart’s financial arm as an NBFC, allowing it to offer loans but not accept deposits. The approval letter and registration certificate, both dated March 13, have not been publicly reported until now.

This strategic milestone is expected to significantly enhance Flipkart's ability to offer tailored credit and financing options directly on its platform, thus strengthening its financial ecosystem and creating new revenue streams. Flipkart currently offers loans through partnerships with established financial institutions like Axis Bank, IDFC Bank, and Credit Saison. With this NBFC license in hand, it now plans to shift toward a more autonomous model.

Sources familiar with the matter indicate that Flipkart will soon launch its lending operations under Flipkart Finance. The company plans to integrate these services into both its e-commerce platform and its fintech app, super.money. This initiative is likely to offer personal loans to shoppers as well as working capital and inventory financing to sellers.

The process to begin direct lending operations is in its final stages. According to a person aware of the internal developments, Flipkart is currently working on appointing key management personnel, finalizing its board of directors, and putting in place robust business plans before rolling out its lending services.

This move could have a major impact on the digital lending ecosystem in India. While many online platforms offer financing via NBFC partners, Flipkart’s direct entry into lending represents a paradigm shift. The ability to lend directly allows the company to exercise greater control over underwriting, credit risk, and margins—thus boosting profitability while creating a seamless financial experience for users.

It is worth noting that Flipkart, valued at around $37 billion in 2024 after raising $1 billion in a Walmart-led funding round, has been making strategic moves to consolidate its presence in India. The company has initiated a transition of its holding structure from Singapore to India—a step that is often considered a precursor to going public. Walmart, which owns over 80% of Flipkart, is reportedly preparing the company for an eventual IPO.

Walmart acquired Flipkart in 2018, which also gave it control over PhonePe, the digital payments and fintech platform that was later spun off into a separate entity. The NBFC license now brings Flipkart closer to PhonePe in terms of fintech capabilities, strengthening the Walmart-backed conglomerate’s hold on India's rapidly expanding digital finance sector.

Meanwhile, Amazon—Flipkart’s chief rival in India—is also seeking a foothold in the financial services space. Earlier this year, Amazon announced its acquisition of Bengaluru-based NBFC Axio. However, the deal is still pending regulatory approval from the RBI. This sets Flipkart ahead in the direct lending race, at least for now.

This regulatory nod reflects the RBI's cautious but evolving approach toward fintech and e-commerce companies entering the lending space. Until now, the central bank has primarily limited NBFC licenses to traditional finance players or fintechs with core lending operations. Granting such a license to an e-commerce giant like Flipkart indicates a growing recognition of the convergence between commerce and finance in the digital age.

Market analysts view this development as a potential game-changer. Flipkart’s entry into direct lending could pressure existing fintech lenders and banks to innovate faster and cut costs. With a vast customer base and seller network already in place, Flipkart enjoys a data advantage that can be leveraged for more accurate credit profiling and targeted offerings.

However, this new role also brings greater responsibility. As an NBFC, Flipkart will be subject to strict compliance regulations, including capital adequacy norms, audit requirements, and borrower protection guidelines. This will require it to build a strong financial infrastructure and governance framework to sustain long-term operations.

In conclusion, Flipkart’s approval for direct lending via an NBFC license marks a historic first for the Indian e-commerce industry. It not only opens up new avenues for revenue generation but also reflects the growing integration of retail, technology, and finance in shaping the future of digital India. As Flipkart gears up to launch its lending operations in the coming months, the move is expected to have ripple effects across the industry—redefining how online platforms interact with credit and consumer finance.