Flipkart Pumps $30 Mn Into Supermoney as Fintech Push Gains Momentum

Walmart-backed e-commerce giant, Flipkart, is investing $30 million into its fintech arm called ‘Supermoney’ as the company steps up its push into lending and stock broking, according to Bloomberg reports. The latest fundraise came after a $20 million investment round that took place last year.

The platform, led by CEO Prakash Sikaria, is also exploring additional capital from external investors to support its growth plans, the report said. The company has also disbursed more than $700 million through lending partners as it aims to reach profitability by year-end.

Supermoney was launched just a year ago. Since then, it has rapidly emerged as India’s fifth-largest UPI app, which is currently processing around 257 million transactions monthly. Its strong performance boosts Flipkart’s overall valuation as the Bengaluru-based e-commerce giant contemplates an initial public offering for its core business.

It has recently launched a co-branded credit card in collaboration with Utkarsh Small Finance Bank called ‘SuperCard’. It offers users the ability to secure their credit cards with limits starting ₹90. The platform, operated by Scapic Innovations, was acquired by Flipkart in 2020.

It has so far launched three financial products such as unified payments interface (UPI) services, personal loans through the Flipkart app, and the now SuperCard, which is a co-branded RuPay credit card.

It is reported that the supermoney app, which was reportedly launched in beta mode two months ago, has witnessed immense growth, seeing 10 million transactions and over 1 million app downloads.

The company has been reportedly working on the project for more than nine months, and its primary focus is on integrating credit with UPI. Supermoney aims to set itself apart from others in a highly competitive fintech landscape with a streamlined user interface.

Following this, it is reported that the company would soon offer its users fixed deposits (FDs) and credit lines via UPI, which was also recently launched by National Payments Corporation of India (NPCI). The company also has the agenda of introducing unsecured credit cards, for users who transition from secured to unsecured products.

The company is primarily targeting professionals aged 20 to 35 with steady incomes. It also hopes to offer crediting services who may not qualify for traditional credit cards.