Flipkart becomes first major Indian online retailer to receive NBFC license from RBI

Walmart-owned e-commerce giant Flipkart has received a non-banking financial company (NBFC) licence from the Reserve Bank of India (RBI), becoming the first major Indian online retailer to do so. 

The licence, which was issued in March to its wholly-owned subsidiary Flipkart Finance Private Limited, enables the company to lend directly to customers and sellers, without the involvement of partner banks or third-party NBFCs.

The development marks a turning point in how credit may be delivered on India’s leading e-commerce platforms. Until now, most online retailers have operated as intermediaries in the lending space—offering Buy Now, Pay Later (BNPL) and EMI options via banks and regulated lenders. Flipkart’s new NBFC status gives it full control over credit underwriting, loan disbursal, and recovery processes, effectively positioning it as both a merchant and a financier.

While Flipkart is not authorised to accept deposits—a key restriction under NBFC norms—the company will be allowed to offer a range of loan products. These may include short-term personal loans, EMIs on purchases, and working capital credit for its seller ecosystem. The company is also expected to route its lending services through both its flagship marketplace and its fintech platform, super.money.

According to media reports, the licence is expected to unlock deferred payment options and customised credit lines, tailored to individual users and merchants. By leveraging its internal data and behavioural insights, Flipkart aims to make credit more accessible, particularly for segments that have traditionally lacked formal lending options.

The certification of registration, issued on March 13, is not yet operational. Flipkart is in the process of completing regulatory formalities such as appointing key managerial personnel, finalising its board, and firming up its business plans, according to the reports. The company has not publicly committed to a launch date, but internal preparations are underway.

Currently, Flipkart offers consumer loans through partners like Axis Bank, IDFC First Bank, and Credit Saison. These partnerships are likely to continue even as the firm transitions some products in-house under the NBFC framework.

The financial services push also aligns with Walmart’s broader strategy. The US retail conglomerate, which owns over 80% of Flipkart, has invested heavily in India’s consumer and fintech sectors. It is preparing both Flipkart and its payments business PhonePe for public listings. Flipkart was last valued at $37 billion in 2024, following a $1 billion funding round led by Walmart.