New Delhi, June 9: In a landmark move set to reshape the landscape of digital commerce and financial services in India, Flipkart has become the first major Indian online retailer to secure a Non-Banking Financial Company (NBFC) license from the Reserve Bank of India (RBI). The approval allows the Walmart-owned e-commerce giant to independently offer credit and financial products to its vast customer and seller base.
With the NBFC license in place, Flipkart can now provide services such as consumer loans, credit lines, and working capital financing for sellers directly through its platform. This development marks a significant shift in the company’s strategy, reducing its reliance on third-party lenders and expanding its footprint in the fast-growing fintech sector.
Industry experts believe the move is in line with the growing trend of e-commerce platforms entering the financial services domain to deepen engagement and increase revenue streams. Flipkart’s access to consumer data and digital reach gives it a unique advantage in offering personalized and data-driven financial products.
The approval from the central bank comes amid intensifying competition in India’s e-commerce sector, with players like Amazon, Reliance JioMart, and Tata Neu also investing in fintech capabilities. Flipkart’s new status as an NBFC is expected to give it a competitive edge, particularly in offering buy-now-pay-later (BNPL) solutions and credit facilities to underserved markets.
“The NBFC license allows Flipkart to further enhance the customer experience by providing seamless access to financial services. It also empowers our sellers by offering easier access to capital,” a company spokesperson said.
Analysts also highlight that Flipkart’s entry into the NBFC space is a strategic response to India’s growing demand for embedded finance and digital lending solutions. As more consumers seek credit options for online purchases, Flipkart’s ability to provide in-house financing could significantly increase transaction volumes on its platform.
According to regulatory norms, Flipkart will be required to follow RBI’s guidelines for NBFC operations, including maintaining a strong compliance framework, ensuring data security, and practicing responsible lending. The RBI’s decision is seen as a vote of confidence in the ability of technology-driven platforms to manage regulated financial services effectively.
This development comes at a time when India’s fintech sector is experiencing robust growth, with digital lending expected to become a $350 billion market by 2025. Flipkart’s move into financial services through an NBFC model is likely to encourage other tech firms to explore similar pathways.
With the NBFC license, Flipkart not only strengthens its core business but also takes a significant step toward becoming a comprehensive digital ecosystem offering both commerce and finance.
