From Distributor to Balance Sheet Lender
For the past two years, Airtel has operated as a lending service provider, partnering with financial institutions to distribute loans through its digital platforms. During this period, it facilitated cumulative disbursements exceeding ₹9,000 crore via partners including Bajaj Finance, DMI Finance and L&T Finance.
With the Reserve Bank of India granting an NBFC licence on February 13, 2026, Airtel is now preparing to lend directly from its own balance sheet. The company will contribute 70% of the ₹20,000 crore capital, while promoter group Bharti Enterprises Limited will infuse the remaining 30%.
Why the Credit Market Looks Attractive
India’s formal credit-to-GDP ratio remains relatively low at around 53%, highlighting the significant untapped lending potential across retail and small business segments. Financial services firms, fintech platforms and banks are aggressively targeting this gap, particularly after strong post-pandemic demand for personal and consumer loans.
Airtel sees this as a natural extension of its digital ecosystem. With 201 million total customers and 108 million monthly transacting users on its Airtel Money platform as of December 2025, the telecom operator already has a substantial base to cross-sell financial products.
Strong Financial Backing
Analysts estimate that Airtel’s operating free cash flow for FY26 is robust, providing adequate financial headroom for the NBFC expansion. Even after accounting for spectrum and adjusted gross revenue (AGR) payments over the next few years, the company is believed to have sufficient deployable cash flows to support phased capital infusion.
This financial strength is crucial, as NBFC operations are significantly more capital-intensive than digital distribution models. Direct lending requires provisioning, risk management infrastructure and strong underwriting capabilities.
Competition from Jio and Established Lenders
The competitive landscape is intense. Reliance-backed Jio Financial Services has built a diversified financial platform integrated into its broader digital ecosystem. Established NBFCs such as Bajaj Finance and Aditya Birla Capital also maintain strong market positions with proven underwriting track records.
Industry experts caution that while Airtel’s subscriber data and analytics capabilities offer an advantage, building a profitable lending book takes time and experience across credit cycles. Risk management and asset quality will be closely watched in the initial years.
Cross-Selling as Core Strategy
Airtel’s strategy hinges on cross-selling loans to its telecom customers and merchant network. Potential offerings include smartphone financing, unsecured personal loans, buy-now-pay-later services and working capital finance for distribution partners.
The Airtel Thanks app is expected to serve as the primary distribution channel, supported by a large data science team that analyses customer behaviour for credit scoring and underwriting decisions.
Observers note that lending businesses typically require several years to scale optimally while maintaining healthy risk-adjusted returns.
Opportunity or Distraction?
The ₹20,000 crore NBFC bet signals Airtel’s ambition to evolve beyond telecom into a broader digital services powerhouse. However, it also raises questions about capital allocation priorities in an industry that continues to demand high investment in spectrum and network upgrades.
If executed prudently, the strategy could unlock significant long-term value by monetising Airtel’s vast user base. But success will depend on disciplined underwriting, efficient capital deployment and the ability to compete in an already crowded financial services market.
