Flipkart, the Indian e-commerce giant owned by Walmart, has expanded its financing offerings by venturing into lending to customers. This strategic move aims to potentially boost sales and gain an edge over its chief rival, Amazon, which has indicated a slowdown in India.
In partnership with Axis Bank, Flipkart is now providing personal loans of up to 500,000 Indian rupees (approximately $6,100), as described on its mobile app. The loan process is hassle-free, requiring no document submission and boasting a quick approval time of just 30 seconds, according to the app. Although Flipkart declined to comment on the new service, it promises customers a seamless borrowing experience.
By introducing personal loans, Flipkart expands its existing financial services portfolio, which already includes a ‘buy now, pay later’ option and a co-branded credit card. E-commerce giants, recognizing the frugality and credit aversion of Indian consumers, have long understood the importance of providing flexible financing options to increase transaction volumes and enhance customer loyalty.
Flipkart’s deeper foray into financial services is notable as it encroaches further into the territory once held by PhonePe, its former subsidiary. Since their separation last year, competition between the two has intensified, with PhonePe making its entry into e-commerce earlier this year. Flipkart’s expansion into lending not only strengthens its position in the market but also underscores the company’s commitment to offering comprehensive financial solutions to its customers.
This strategic move by Flipkart demonstrates its determination to stay ahead in the highly competitive Indian e-commerce landscape and capitalize on the potential revenue growth that flexible financing options can bring.
