If all goes as planned, you might soon be able to apply for loans from several elending firms on Indian e-commerce giant Flipkart.
According to a report in ET, the Bengaluru-based online marketplace company is currently taking meetings with a handful of digital lending startups to offer financial products on its e-commerce site. In order to take this initiative online soon, the company has also created a separate team that would focus on financial services and products.
Last year in August, ET had reported in a separate report that the Indian e-commerce leaded was in talks with several banks to offer loan products to customers, especially during its ‘Big Billion Day’ sale. One of the sources cited in the earlier report had said while several e-commerce players in India are contemplating financial products, Flipkart is currently much ahead of others in realising this gaol as it is very keep on launching this as a revenue-generating business for itself and also help its customers.
A source cited earlier had revealed that interested startups were engaged in negotiations with Monomita Roy Avasarala, lead product manager for fintech and consumer credit products at Flipkart.
While Flipkart hasn’t sent out any official statement regarding launching financial products, but Avasarala’s LinkedIn profile does provide a little clarity. According to her profile, she is responsible for launching the ‘No Cost EMI’ product (creating a marketplace of lenders, brands, and consumers) on the e-commerce platform in order to drive affordability and increase sales of high-ticket-size items. It also mentions that she is currently “working to extend credit and convenience features to a larger customer base with innovations such as ‘Flipkart Pay Later’, and is leveraging machine learning algorithms to build the next generation of credit products”.
Notably, Flipkart already provides offers its sellers with an easy access to loans on its e-commerce platform in partnership with several banks and non-banking finance companies. In addition to this, last year, the e-commerce giant joined hands with Axis Bank to launch a credit card with discount benefits. According to some sources, Flipkart is also interested in offering mutual funds and insurance products on its site.
According to industry experts, the margins that the e-commerce giant would earn when offering financial products through tie-ups would essentially be very low, but Flipkart could make up for the same through large volumes.
While Flipkart is already at the meeting stage with these startups, experts predict that there is a strong chance that Amazon, one of its Flipkart’s biggest competitors, might also follow Flipkart’s route and start offering financial products. Further, since it is already an investor in financial products platform BankBazaar, it could really help it in speeding up the whole process.
Two years ago, in 2015, Snapdeal in a partnership with Credila, the education loan arm of HDFC, provided education loans to students through its platform. It has also invested in Rupeepower, a financial services portal.
Paytm, which recently launched its payments bank, is also contemplating partnering with various lenders and insurance companies to offer financial services to customers on its platform.
[Top Image: Indianonlineseller]