Indian e-commerce giant Flipkart is all set to enter the financial services space with a focus on offering credit and insurance products to both consumers and sellers on its platform, a report by the Economic Times said. According to the report, the company has already begun the process of applying for an NBFC (Non-Banking Financial Company) license and will commence its fintech services with microlending and micro-insurance for purchases on its website. In the long run, the company plans of moving to products such as general and life insurance, beyond its platform, the report added. Consumer lending to drive growth According to the firm’s senior vice-president Ravi Garikipati, given that around 60% of the over 100 million customers of the e-commerce website don’t have access to credit, the microlending service will shorten this gap and enable this segment of the customer base to make large purchases. Consequently, Flipkart expects its lending products to contribute to 15-20% of its growth over the next three years. Garikipati said that at present, the “buy now-pay later” product has 6-8 lakh users, with a 60% repeat rate. According to him about 80 lakh Flipkart customers are eligible for it. It must be noted that apart from partnering with banks and other financial institutions to offer EMIs to customers, the e-tailer has previously launched a credit service, dubbed ‘buy now, pay later’ to select patrons last year. However, the Bengaluru based company says that a gap still exists between its credit offerings and large purchases, which in-turn hinders…
Please subscribe to MediaNama. Don't share prints and PDFs.
You May Also Like
News
Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...
Advert
135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...
News
By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...
News
Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...