Flipkart has secured a Non-Banking Financial Company (NBFC) license from the Reserve Bank of India (RBI), marking a significant step for the e-commerce giant into the financial services sector. This license, granted in March 2025, enables Flipkart to offer loans directly to its customers and sellers, a move that could transform the landscape of e-commerce in India.

This marks the first time a major e-commerce platform in India has received an NBFC license. Previously, Flipkart partnered with banks and other financial institutions like Axis Bank, IDFC Bank, and Credit Saison to provide personal loans and credit options to its users. With the NBFC license, Flipkart can now operate independently in the credit space, cutting out the intermediaries and potentially boosting its profitability.

The NBFC license allows Flipkart to extend credit from its own books. The company plans to offer loans through its e-commerce site and its fintech application, super.money. This includes providing financing options to sellers on the platform, who often face challenges related to working capital. By offering low-cost financing, Flipkart aims to incentivize sellers to prioritize listings on its marketplace.

The integration of financial services within its e-commerce platform offers several advantages. Flipkart can leverage transaction data to assess creditworthiness, reducing default risks and improving pricing precision. This data-driven approach allows for tailored financial products for its vast user base. Moreover, offering consumer loans for purchases of electronics and appliances can increase average order values, creating a cycle of growth.

This move also aligns with Walmart's broader strategy for Flipkart. Walmart, which holds a majority stake in Flipkart, aims to take the company public. Strengthening Flipkart's financial services capabilities supports this ambition. Furthermore, Flipkart is shifting its holding company from Singapore to India, a move that reflects its commitment to the Indian market and aligns with local regulations.

While Flipkart is gearing up to launch its lending operations, it is also finalizing internal processes and appointing key management personnel. The launch is expected to occur within the next few months, contingent on these preparations.

Competition in the e-commerce sector is intensifying, with rivals like Amazon also expanding into financial services. Amazon's acquisition of Axio, a Bengaluru-based non-bank lender, is awaiting clearance from the central bank. Flipkart's NBFC license could provide a competitive edge by streamlining lending operations and improving profitability.

The RBI's approval of Flipkart's NBFC license comes after the company applied in 2022, reflecting a growing trend of integrating financial services within e-commerce platforms. This move unlocks access to India's growing unsecured consumer lending market, projected to reach $100 billion by 2027. It also allows Flipkart to create a "closed-loop" ecosystem where users can transact, borrow, and pay within the Flipkart universe, reducing leakage to rival platforms.