Walmart-owned e-commerce company Flipkart has been licensed to lend to the Reserve Bank of India (RBI), which will now allow the company to give direct loans to customers and vendors on their platform. This information was reported in a report by the news agency. For the first time, the RBI has issued a Non-Banking Finance Company (NBFC) license to the big e-commerce company. Under this license, Flipkart can provide a loan, though it will not be able to get deposits from the customer.
Flipkart got the license
Most e-commerce platforms currently provide a loan facility with banks and NBFCs, but after receiving a loan license, Flipkart can now directly lending. This model is considered more beneficial to the company.
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The Reserve Bank issued a registration certificate to Flipkart Finance Private Limited on March 7, which is officially approved by the company as a NBFC (non-banking finance company). The royators have checked the copy of the registration certificate and approval letter issued on March 7. This approval information has not been disclosed in public so far.
Flipkart had applied in 1
According to the Central Bank’s approval letter, Flipkart had applied for a license in 1. Flipkart or the Reserve Bank of India did not respond immediately to the request made for the comment of royators. According to a source familiar with the matter, the e-commerce veterans Flipkart can start lending in the next few months. However, since the discussion was private, the source did not disclose its identity.
When will Flipkart start lending?
The report states that the final decision on starting a loan service will be taken only after the completion of the internal process. These include the appointments of the major management posts, the selection process of the board members and the final form of the business plan. Flipkart plans to lend customers directly via their own popular-commerce platform and fintech app Super.Money.
In addition, the company can also provide finance facilities to the sellers present on their platform. Currently, e-commerce giants offer personal loans to consumers through partnerships with lenders like Axis Bank, IDFC Bank and Credit Syson.
Flipkart is preparing to launch the IPO.
Flipkart’s evaluation was $ 2 billion when he received $ 2 billion under the leadership of Walmart. Now the company is moving its holding company from Singapore to India. Walmart plans to list this 3 -year -old company in the stock market.
Walmart bought a controlling steak in Flipkart in 1, which also gave him ownership of Fintech Company PhonePe. PhonePay is currently preparing for the IPO. Earlier this year, Flipkart’s rival Amazon bought a non-bank lender Axio in Bengaluru. However, the agreement is still waiting for the Reserve Bank’s approval.
