E-commerce platform Flipkart has secured a lending licence from the Reserve Bank of India (RBI), allowing it to offer loans directly to customers and sellers on its platform, a report has said.
This is the first time that the RBI has granted a large e-commerce player in the country a non-bank finance company (NBFC) licence, news agency Reuters reported.
Though e-commerce platforms offer loans in tie-ups with banks and NBFCs, the latest move allows Flipkart to lend directly.
However, the RBI has allowed the e-commerce platforms permission to only offer loans, not take deposits. As per the report, the RBI has issued its certificate of registration to Flipkart Finance Private Limited on March 13.
When contacted about the grant of the NBFC licence, Flipkart confirmed the development but did not divulge any details, according to news agency PTI.
The RBI’s approval letter said that Flipkart applied for the licence in 2022. US retail giant Walmart holds a more than 80 per cent stake in Flipkart. It had bought a majority stake in the ecommerce platform back in 2018.
In April this year, IPO-bound Flipkart had shared its intention to relocate its holding company from Singapore to India, a strategic decision that the homegrown e-commerce firm said reflects deep and unwavering commitment to India and its remarkable growth.
“We are inspired by the Government of India’s strong vision and proactive initiatives in fostering a thriving business environment and ease of doing business, which have significantly shaped our journey. This move represents a natural evolution, aligning our holding structure with our core operations, the vast potential of the Indian economy and our technology and innovation-driven capabilities to foster digital transformation in India,” a Flipkart spokesperson had said in April.
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