Walmart-backed Flipkart has received the Reserve Bank of India’s approval to operate as a non-banking financial company (NBFC), the company confirmed on June 6. Sources said the licence was quietly granted in March this year, although Flipkart has stayed tight-lipped about how it plans to use this new permit.
While no formal announcement has been made beyond acknowledging the development, the licence potentially opens doors for Flipkart to start lending directly to its customers. Think EMIs, instalment payments, or possibly even small-ticket personal loans – all bundled into your online shopping cart.
There’s already a growing trend of consumers opting for EMI or 'Buy Now Pay Later' models on large-value purchases. With its own NBFC licence, Flipkart could cut out the middlemen and lend directly. Whether it’ll do that – or when – is still anyone’s guess.
As of now, there’s no word from the company on any lending products or financial service launches. But industry watchers believe this is a strategic move that might eventually give Flipkart more control over credit, customer engagement, and possibly profits.
This licence comes at a time when Flipkart has been making several India-focused shifts. Back in April, the company said it plans to relocate its holding entity from Singapore to India. The shift, it said, is part of aligning operations more closely with the Indian economy, and perhaps also prepping for a long-anticipated IPO.
Walmart, which owns more than 80% of Flipkart, acquired its majority stake in 2018. The e-commerce platform has since expanded its footprint and is now among India’s biggest players in online retail.
