Amazon (AMZN) and Walmart (WMT) are gearing up to take on India’s biggest banks by offering small business and consumer loans.
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Challenge Major Lenders
According to a Reuters article, both Amazon and Walmart-owned Flipkart are looking at offering buy-now, pay-later (BNPL) products.
Bengaluru-based non-bank lender Axio, which Amazon bought earlier this year is currently focused on BNPL and personal loans. But it will now offer credit for small businesses and cash management solutions. This will challenge major business lenders such as HDFC and ICICI.
“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, vice president for payments for emerging markets at Amazon.
He said the company would be “designing tailored lending propositions” for merchants and small businesses to improve cash flow management efficiency and unlock capital.
Flipkart, in which Walmart has a stake of about 80%, registered its non-bank lending arm, Flipkart Finance, in March and is awaiting the Reserve Bank of India’s final approval for its business plans.
It is understood that it is looking at no-cost monthly installment loans for online shoppers over 3 to 24 months, and loans for consumer durables at 18%–26% interest rate per annum.
Flipkart, which helped power Walmart’s strong Q3 international sales, expects to start offering these financial products next year.
Indian Demand is Booming
According to data from credit bureau CRIF High Mark, India’s consumer loan market has grown from nearly $80 billion in March 2020 to around $212 billion as of March 2025. This includes unsecured personal loans, credit cards and loans for consumer durables.
“There is immense potential for them [Amazon and Flipkart] to make a dent because they own both the supply-side and demand-side customer data,” said Rohan Lakhiyar, partner at consultancy Grant Thornton Bharat’s financial services risk division. “But execution will be key as they venture beyond core retail.”
The World Economic Forum states that there are over 60 million micro, small and medium-sized businesses in India contributing to 30% of its GDP. However, one of its main challenges is financial support.
Is AMZN a Good Stock to Buy Now?
On TipRanks, AMZN has a Strong Buy consensus based on 43 Buy and 1 Hold ratings. Its highest price target is $340. AMZN stock’s consensus price target is $295.23, implying a 28.83% upside.
