Exclusive-Walmart’s Flipkart secures approval for direct lending in India

Written by Ashwin Manicandan

(Reuters) -Flipkart obtained a lending license from the Indian Central Bank and the banking organizer, allowing it to provide direct loans to customers and sellers on its platform, and a company spokesman after Reuters reported the development of documents and the source.

This is the first time that the Indian Reserve Bank has given a major player in the e -commerce in India a non -banking financial company (NBFC), allowing it to lend but does not take deposits.

Most e-commerce platforms currently offer loans in a tie with banks and NBFCs, but the lending license will enable Flipkart-the largest e-commerce company in India-from lending directly, a more profitable model for the group.

The Central Bank has issued its registration certificate – a document officially recognized by the company as NBFC – to Flipkart finance Private Limited on March 13.

Reuters reviewed a copy of the registration certificate and the approval message also dated March 13. The approval was not reported in advance.

Flipkart, in which Walmart carries the retail in the United States, offers a share of more than 80 %, to obtain the license in 2022, according to the Central Bank approval message.

India’s reserve bank did not immediately respond to Reuters for comments.

The e -commerce giant may start the lending process “within a few months”, according to a source who realizes the issue that it refused to determine as private conversations.

The source said that the final decision on the launch will be subject to the completion of various internal operations, such as the appointment of the main administration employees and members of the board of directors and the end of work plans.

The source said that Flipkart plans to lend to its customers directly on the famous e -commerce platform and through the Fintech Super.Money application. They also added that it might provide financing for sellers on the platform.

Currently, the e -commerce giant provides personal loans to clients through ties with lenders such as Axis Bank, IDFC Bank and Credit Saison.

Folipkart, whose last value of $ 37 billion in 2024, when she raised one billion dollars in a financing round led by Wall Mart, is working to transfer her Holding Company from Singapore to India. Walmart also aims to take the 17 -year -old public company.

Walmart bought a controlling stake in Flipkart in 2018, which also granted Phonepe ownership, FINTECH is also preparing to subscribe to the public subscription.

Earlier this year, the Amazon competition from Flipkart on AXIO acquired a lender non -sources in Bangaluru, but the deal was not wiped by the central bank.

(Participated in Ashwin Manicandan reports; edited by Jean Harvey and Era Dougal.)