E-commerce giants Amazon and Walmart-backed Flipkart are set to intensify their push into India’s financial services market, targeting small businesses and consumers with tailored lending products. The move positions the platforms as challengers to traditional banks in the rapidly expanding credit market.

Amazon acquired Bengaluru-based non-bank lender Axio earlier this year, which had primarily focused on buy-now, pay-later (BNPL) and personal loans. The company now plans to expand Axio’s offerings to provide loans to small businesses and cash management solutions, aiming to improve liquidity and capital access for digitally engaged merchants outside India’s top cities.

“We see tremendous headroom for expanding credit growth in India, particularly among digitally engaged customers and small businesses outside of the top cities,” said Mahendra Nerurkar, Amazon’s VP for payments in emerging markets. He added that Amazon is designing tailored lending propositions to improve cash flow efficiency for merchants.

Meanwhile, Flipkart Finance, Flipkart’s non-bank lending arm registered in March, is awaiting the Reserve Bank of India’s approval to launch its financial products. The company plans two types of pay-later offerings:

• No-cost monthly installment loans for online shoppers over 3 to 24 months.
• Consumer durable loans at 18%–26% per annum, compared with traditional lenders’ rates of 12%–22%.

Flipkart expects to roll out these offerings next year, according to sources familiar with the plans.

India’s consumer loan market has grown significantly, expanding from around $80 billion in March 2020 to approximately $212 billion by March 2025, according to credit bureau CRIF High Mark. The segment includes unsecured personal loans, credit cards, and consumer durable loans.

Both Amazon and Flipkart operate top-ranking apps on India’s Unified Payments Interface (UPI), giving them a strategic advantage in combining supply-side and demand-side customer data for financial offerings.

Earlier this year, the RBI allowed foreign-backed tech platforms to lend directly to customers through wholly-owned units, opening a significant opportunity in India’s financial services sector.

Amazon has also partnered with several local lenders to offer fixed deposit products on its Amazon Pay platform, with a minimum investment of ₹1,000 ($11), further signaling its ambition to become a broader financial ecosystem for Indian users.

Rohan Lakhiyar, partner at Grant Thornton Bharat, noted: “There is immense potential for them to make a dent because they own both the supply-side and demand-side customer data. But execution will be key as they venture beyond core retail.”