Flipkart to begin direct lending with NBFC license from RBI
The move could pave the way for Flipkart to offer loans directly to customers.
Flipkart has received a lending licence from the Reserve Bank of India (RBI), the Walmart-backed ecommerce company confirmed on Thursday.
The nod came in March this year, according to sources.
When contacted about the grant of the NBFC licence, Flipkart confirmed the development but did not divulge any details.
The move could pave the way for Flipkart to offer loans directly to customers, sources said noting the specific instances in which the customers at times choose the EMI model or instalment mode to pay for products they choose.
However, the company's specific plans on this, now with the NBFC licence, could not be immediately ascertained.
Walmart currently holds over 80% stake in Flipkart. It had bought a majority stake in the ecommerce platform back in 2018.
In April this year, IPO-bound Flipkart shared its intention to relocate its holding company from Singapore to India, a strategic decision that the homegrown ecommerce firm, said reflects "deep and unwavering commitment to India and its remarkable growth".
"We are inspired by the Government of India's strong vision and proactive initiatives in fostering a thriving business environment and ease of doing business, which have significantly shaped our journey. This move represents a natural evolution, aligning our holding structure with our core operations, the vast potential of the Indian economy and our technology and innovation-driven capabilities to foster digital transformation in India," a Flipkart spokesperson had said in April.