Flipkart Secures Nod for Direct Lending in India

Walmart's Flipkart has secured a lending license from the Indian central bank and banking regulator, enabling it to offer loans directly to customers and sellers on its platform, according to documents reviewed by Reuters and a source.

- Reuters

This is the first time the Reserve Bank of India has granted a large e-commerce player in India a non-bank finance company (NBFC) license, allowing it to lend but not take deposits.

Most e-commerce platforms currently offer loans in tie-ups with banks and NBFCs, but a lending license will enable Flipkart - India's largest e-commerce firm - to lend directly, a more lucrative model for the group.

The RBI issued its certificate of registration - a document that officially recognizes a company as an NBFC - to Flipkart Finance Private Limited on March 13.