Amazon and Flipkart are widening their ambitions in India’s financial services landscape, and this time the focus is squarely on lending products aimed at small businesses and everyday consumers. The move comes at a moment when digitally active merchants, especially those based outside major metros, are looking for quicker credit options than what conventional banks usually offer.
Amazon has been preparing for this expansion ever since it acquired Axio, a non-bank lender known for its consumer finance products. With the deal finally integrated, the company is ready to restart small-business loans on its platform. Along with credit, Amazon plans to roll out cash-management solutions that help merchants manage daily inflows and payouts. People tracking the development say the company has seen rising demand for short-tenure credit from sellers who rely heavily on online orders and need predictable access to working capital.
Flipkart, meanwhile, has been sharpening its own set of lending tools as part of a broader push to strengthen loyalty among its marketplace sellers. The company has been testing new consumer-focused loan offerings that allow shoppers to access instant, small-ticket credit during checkout. This is expected to help Flipkart improve conversions at a time when e-commerce growth is being driven by Tier 2 and Tier 3 cities.
For India’s banks, the growing presence of these tech giants in lending is not a small development. Both companies sit on massive pools of consumer and merchant data, giving them an advantage in assessing risk more precisely. As Amazon and Flipkart broaden their reach, the line between e-commerce marketplace and financial service provider continues to blur, signalling the start of a more competitive phase for India’s digital lending market.
