Flipkart Launches Customer Lending Program to Drive Sales Growth in India

Flipkart, the Bengaluru-based company owned by Walmart, has expanded its range of financial services by introducing lending options for customers.
Flipkart

Flipkart, the Bengaluru-based company owned by Walmart, has expanded its range of financial services by introducing lending options for customers. This move aims to potentially increase sales, particularly as its main competitor, Amazon, has indicated a slowdown in India.

In collaboration with Axis Bank, Flipkart now offers credit of up to 500,000 Indian rupees (approximately $6,100), as stated in the app's description. What sets this loan apart is its hassle-free process, requiring no document submission, and boasting a quick 30-second approval time. The app promises customers a seamless borrowing experience. The news about this service was initially reported by the Indian news outlet, the Arc. Flipkart has chosen not to comment on the matter.

With the introduction of personal loans, Flipkart expands its existing financial services portfolio, which already includes features such as a 'buy now, pay later' option and a co-branded credit card.

E-commerce giants have recognized the need for diverse financing options to cater to Indian customers' frugality and credit aversion. Over the years, these companies have partnered with lenders like Bajaj Finance and various banks to provide such services. By offering financing options, they aim to alleviate immediate financial burdens, leading to higher transaction volumes and fostering customer loyalty. These services empower consumers to make significant purchases and stagger payments, consequently boosting overall spending and driving substantial revenue growth.

It is worth noting Flipkart's deeper foray into financial services, as it encroaches on the territory once exclusively held by PhonePe, a former subsidiary. 
Following their separation in the previous year, the rivalry between Flipkart and PhonePe has significantly intensified. Earlier this year, PhonePe made its entry into the e-commerce sector, further intensifying the rivalry between the two companies.