Fintech lenders have new competition: Flipkart and Amazon
Both Amazon and Flipkart have applied for NBFC licenses in order to be able to lend to their sellers. They’ll be eating the lunch of fintech lending startups
NBFC licenses will help Amazon and Flipkart to give loans to their sellers at better deals than any other financial institution
Giving loans to the two e-commerce retailers’ sellers is a low hanging fruit for fintech lending startups
Amazon and Flipkart’s sellers are a predictable and safe bet. Losing that business can prove costly for lending companies
There are a million SMEs that fintech lending startups could focus on but it is capital intensive to reach them
Though Flipkart launched in 2007, it was only in 2013 that e-commerce really took off in India. That was the year Amazon entered India through a marketplace model, and Flipkart too launched its own marketplace model.
Their 2013 launch of the marketplace model turned the two of them into “platforms”, enabling hundreds and thousands of brands and sellers to sell their products to their millions of customers.
From selling smartphones, books, and apparel to customers, the two of them now started offering warehouses, packaging, and logistics to sellers. The great Indian e-commerce gold…
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