The report states that Flipkart may start the lending operations in a few months
Giving it the facility to offer loans directly to customers and sellers on its platform, Flipkart, an ecommerce firm, has secured a lending license from the Reserve Bank of India (RBI), Reuters reported.
The report noted that this marks the first instance of the Indian central bank granting a large ecommerce player in the country a non-banking finance company (NBFC) license. This allows the company to lend but not take deposits.
Currently, the ecommerce platforms provide loans in tie-ups with banks and NBFCs. Reuters reported that the central bank has issues its certificate of registration, a document which officially recognises a company as an NBFC. Reuters stated it has reviewed a copy of both the approval letter and the certificate of registration.
Flipkart applied for the license in 2022, as per the report, which added that the ecommerce company may start the lending operations in a few months. Post appointment of key management personnel, board members and finalisation of business plans, the final decision on the launch will be taken, it said.
The company is looking to lend directly to its customers through its fintech app super money and on its ecommerce platform. As far as the competitive landscape is concerned, the report noted that Amazon has also acquired a Bengaluru-based non-bank lender Axio. However, the deal is yet be cleared by the RBI. (With Reuters Inputs)
