Flipkart, which is owned by Walmart, is intensifying its efforts in the digital payments and finance sectors. The e-commerce giant is venturing into credit marketplace startups, earmarking around $15-20 million for this internal initiative, led by Prakash Sikaria, a senior executive within Flipkart, Prakash Sikaria, a Senior Vice President at Flipkart who had previously led the firm’s social commerce offering Shopsy, is in charge of spearheading the creation of an in-house credit marketplace, which will operate as part of Flipkart. The allocated capital will be invested in this new initiative.

The existing personal loan products on Flipkart’s platform, which offer loans of up to 5 lakh, will eventually be transferred to this new entity. Flipkart intends to be one of the primary customers of this credit marketplace. Once operational, this credit marketplace will enable Flipkart to offer credit products and services to its extensive user base. This move aims to enhance customer engagement, encouraging users to continue shopping on Flipkart’s platform. Notably, these credit products will also be available to external customers and platforms.

Furthermore, the credit marketplace will provide Flipkart with valuable customer data, including insights into spending patterns, creditworthiness, and preferences. This data can be leveraged for targeted marketing, product development, and improving the overall customer experience. However, Flipkart will face competition from established fintech companies, banks, and other e-commerce players offering similar services. If successful, this marketplace diversification can contribute to stabilizing Flipkart’s financial performance, aligning with its broader strategy of expanding its financing and payment solutions. The company is on the verge of integrating with the Unified Payments Interface (UPI) through its third-party app.