Flipkart Secures NBFC Licence from RBI, Enters Direct Lending Space

In a groundbreaking development for India’s digital economy, Walmart-owned Flipkart has received approval from the Reserve Bank of India (RBI) to operate as a Non-Banking Financial Company (NBFC). With this licence, Flipkart can now offer loans directly to its customers and sellers, moving beyond partnerships with traditional lenders. This move marks the first time an Indian e-commerce giant has been granted such a licence, paving the way for deeper fintech integration in online retail.

Why in News?

On March 13, 2025, the RBI granted Flipkart Finance Private Limited a certificate of registration to operate as an NBFC. This approval is significant as it allows Flipkart to Lend directly, unlike its previous tie-ups with banks.Operate independently in the credit space. Expand its fintech ecosystem through its app, super.money.

What Is an NBFC?

• NBFCs are financial institutions that offer loans and credit, but cannot accept traditional bank deposits.
• NBFCs are regulated by the RBI under the RBI Act, 1934.

What Flipkart’s NBFC Licence Enables

• Direct lending to customers and sellers on Flipkart’s platform.
• Offer personal loans and business credit through Flipkart’s fintech arm super.money.
• Operate without intermediaries like banks or third-party NBFCs.

Background

• Flipkart applied for the NBFC licence in 2022.
• Previously, Flipkart offered credit in partnerships with Axis Bank, IDFC Bank, and Credit Saison.
• Flipkart was valued at $37 billion in 2024 during its last funding round.

Next Steps Before Launch

• Appointment of key executives and board members.
• Finalisation of the lending business model.
• Expected to begin operations in the next few months.

Industry Context

• Amazon recently acquired Bengaluru-based NBFC Axio, pending RBI clearance.
• Flipkart becomes the first major Indian e-commerce platform to gain NBFC approval.