Flipkart secures NBFC license, becomes first eCommerce lender in India

By Gloria Methri

Flipkart has received an NBFC licence from the Reserve Bank of India (RBI), making it the first Indian eCommerce player to gain regulatory approval for direct lending.

The RBI’s nod, granted to Flipkart’s wholly-owned subsidiary—Flipkart Financial Services—marks a strategic pivot for the Walmart-backed retail giant as it enters the FinTech space with greater autonomy. The licence allows Flipkart to offer credit directly to customers and sellers on its platform, without relying on third-party financial institutions.

The development marks a strategic expansion into financial services, enabling Flipkart to offer tailored credit products, including personal loans, short-term purchase financing, and working capital loans for merchants. The company will leverage its data ecosystem to assess creditworthiness and manage risk internally, potentially streamlining loan disbursals and enhancing customer experience.

A Shift in eCommerce Lending

Until now, eCommerce players in India have primarily relied on partnerships with banks and NBFCs to offer credit-based services such as ‘Buy Now, Pay Later’ (BNPL) and seller financing. With its new NBFC status, Flipkart gains control over underwriting, disbursal, and recovery processes, enabling the company to design more customised financial products based on its proprietary user data and behavioural insights.

This strategic move not only helps Flipkart strengthen its value proposition among sellers and buyers but also boosts its competitiveness in a rapidly expanding credit market. The eCommerce firm is expected to initially focus on short-term personal loans, credit lines for online purchases, and working capital loans for sellers, with plans to scale offerings as it grows its financial services portfolio.

The RBI’s approval signals confidence in Flipkart’s compliance capabilities and governance framework. It also aligns with the regulator’s emphasis on responsible lending and transparent digital finance practices.

As India’s eCommerce sector continues to expand, Flipkart’s entry into direct lending could reshape online retail and credit access, setting a precedent for similar players in the market.