Flipkart offers upto Rs 5 lakh in lending to customers with Axis tie-up

Flipkart's introduction of customer lending services is aimed at boosting sales by providing an additional financing option to customers

Flipkart is now offering loans for up to Rs 5 lakh through its partnership with Axis Bank. The lending service is accessible through Flipkart's app and boasts a 30-second approval time while removing the need for document submission.

The move also comes after Amazon, one of Flipkart’s largest competitors, signaled a slowdown in India, according to a report by TechCrunch.

By introducing personal loans, Flipkart is expanding its range of financial services, which already includes a 'buy now, pay later' option, EMI payments, and a co-branded credit card.

"Expanding on the financing options available to customers alleviates the immediate burden of large purchases, encouraging higher transaction volumes and fostering customer loyalty & trust. These services empower consumers to make big-ticket purchases and manage payments over time, ultimately driving substantial revenue growth", the company said.

 

The Walmart-owned Bengaluru-based company had separated from PhonePe, which it had acquired in 2016, and subsequently moved its entire financial operations from Singapore to India. Since then it appears Flipkart is growing its own financial services.

PhonePe, has also ventured and expanded into the ecommerce sector.

Walmart’s Chief Financial Officer John David Rainey had stated both Flipkart and Phonepe could be “$100 billion business in India” at an investor conference in June.”

In the quarter ended April 30, Walmart stated that its Flipkart had generated double-digit sales growth thanks to new shoppers in some cities and a 50 per cent jump in ad sales.