Flipkart, India’s online marketplace is set to enter the consumer lending sector. They have already applied for a non-banking finance companies license. They are already in talks with a few fintech startups regarding digital lending to offer financial products, as reported by The Economic Times.
Flipkart is an online marketplace based in Bengaluru. It was founded in 2007, by Sachin Bansal and Binny Bansal. It was recently acquired by Walmart, a multinational retailer, in a landmark deal worth $16 Billion.
To establish themselves in this digital lending market, Flipkart has already tied up with banks like Axis Bank to offer benefits on credit card transaction and they are also looking to tie up with NBFC startups focussed on providing cashless credit to their users.
Manavjeet Singh, CEO of lending platform Rubique, said: “We are talking to multiple e-commerce players who are looking to launch financial products. Since financial products are not their core area, they are looking to integrate with players like us who have multiple banking and NBFC partners and offer nearly 200 products.”
They are also looking to dive into microfinance and microlending for their large user base. Flipkart might also be looking to get into insurance in the long run, there had been reports of Flipkart rolling out insurance services.
Fintech products like “buy now pay later” is already a hit among the customers, and it is only expected to grow as their user base grows. This product is already used by 6-8 lakh people on Flipkart with over 60% users choosing this product in further transactions.
The fintech lending space is already a little crowded with many startups still trying to find their niche like LendingKart, Rubique, OYE!Loans, PaisaBazaar, and BankBazaar. Flipkart also needs to be on the lookout for Amazon, which is already an investor in BankBazaar. Amazon could also get into digital lending space and could be another major competitor for Flipkart.