Amazon and Flipkart, owned by Walmart, are intensifying their push into financial products in India, aiming to challenge the country’s established banks. Amazon is preparing to offer loans to small businesses, while Flipkart is exploring buy-now, pay-later (BNPL) products. This move comes as both companies seek to capitalise on the growing demand for credit among digitally engaged customers and small businesses outside major cities.
Amazon’s strategy involves leveraging its acquisition of Bengaluru-based non-bank lender Axio. Currently focused on BNPL and personal loans, Axio will now reintroduce credit offerings for small businesses and introduce cash management solutions. Mahendra Nerurkar, vice president for payments for emerging markets at Amazon, stated the company intends to design tailored lending propositions for merchants and small businesses to improve cash flow management efficiency and unlock capital.
Flipkart, in which Walmart holds approximately 80% stake, has registered its non-bank lending arm, Flipkart Finance, in March and awaits final approval from the Reserve Bank of India (RBI) for its business plans. Company filings reveal plans for no-cost monthly installment loans for online shoppers, spanning 3 to 24 months, and loans for consumer durables at annual interest rates between 18% and 26%. A source familiar with Flipkart’s plans anticipates the rollout of these financial products next year.
Amazon has also partnered with several local lenders to offer fixed deposit savings products via its Amazon Pay platform, with minimum deposits starting at 1,000 rupees ($11). Amazon is a multinational technology company focusing on e-commerce, cloud computing, online advertising, digital streaming, and artificial intelligence. Flipkart is an Indian e-commerce company. Both companies ambitions gained a boost after the RBI allowed them to lend directly to customers through wholly owned units.
