In a bid to enter the full-fledged financial services business, Flipkart may also apply for a new non-banking financial company licence
Weeks before its annual Diwali sale, Flipkart has launched a ‘cardless credit’ programme for shoppers, offering them an instant credit line of up to Rs 60,000 to purchase products on its website, the Mint reported.
In a bid to enter the full-fledged financial services business, Flipkart may also apply for a new non-banking financial company (NBFC) licence.
Senior Vice-President Ravi Garikipati, Head of Fin-Tech Business at Flipkart, said consumer lending would occur in two capacities. Once it receives the licence, it will directly lend to consumers, but it will also work with other NBFCs and financial services.
Garikipati has held many other roles in Flipkart, including that of Chief Technology Officer. He believes that Tier II and III cities will drive online market growth, which Flipkart wants to facilitate through innovation.
“A big percentage of our target consumer does not have access to formal credit. For them, conventional financial institutions are not a viable option. And that is where we see an opportunity,” he told the paper.
Customers can sign up for new cardless credit initiative through an application procedure. Instant credit up to Rs 60,000 will be granted to customers on the basis of their credit history. People shopping on Flipkart will also be offered the option to pay the amount later in the month through easy monthly instalments.Flipkart has been eyeing many opportunities to enter the financial services market. Kalyan Krishnamurthy, CEO of Flipkart, said in January that the firm would launch more such services for customers like it did last year with schemes like EMIs on debit cards.