Flipkart has started lending to consumers, increasing its financing options in a move that may increase sales despite Amazon, its main rival, signaling a downturn in India.
According to a description on its app, the Walmart-owned company with headquarters in Bengaluru is offering a credit of up to 500,000 Indian rupees, or $6,100, in collaboration with lender Axis Bank.
The loan promises users a hassle-free borrowing experience and boasts a 30-second approval time, according to the app. The Arc, an Indian journalism organization, discovered the service first. Flipkart opted against commenting.
Flipkart’s financial services portfolio, which currently includes a “buy now, pay later” option and a co-branded credit card, is expanded by the addition of personal loans.
Over the years, e-commerce behemoths that have worked with Bajaj Finance and other lenders like banks have come to the realization that a wider financing option is needed to address Indian consumers’ austerity and credit aversion.
A financing option lessens the immediate burden, encouraging more transactions and boosting client loyalty. These services increase spending by enabling customers to make large purchases and spread out payments, which results in significant revenue growth.
It is notable that Flipkart is expanding its financial services offerings because it is taking over more of PhonePe, a former subsidiarymarket ,’s share. The two’s rivalry has gotten more intense since they split up last year. In the beginning of this year, PhonePe entered the online marketplace.