E-commerce giant Amazon is set to acquire Axio (formerly Capital Float), a Bengaluru-based digital lending firm, marking a significant move into India’s growing fintech market. The deal was finalized in December 2024 after thorough due diligence and is now awaiting regulatory approvals, as confirmed in a blog post by Axio’s founders.
This acquisition extends the six-year relationship between Amazon and Axio, focused on making reasonably priced credit available to Indian consumers. Amazon already owns an 8% stake in Axio, which it had acquired during a ₹144-crore Series C funding round in 2018. The latest deal is believed to value the company below $200 million.
Axio was founded in 2013 by Sashank Rishyasringa and Gaurav Hinduja. It initially targeted SMEs and then later entered consumer finance, offering personal loans and checkout credit-related services- popularly known as Buy Now Pay Later or BNPL. The company rebranded its products under the Axio name in 2022, after having acquired over 10 million customers with an AUM of ₹2,200 crore and a GNPA ratio of 3%.
Despite the tough landscape in unsecured lending, Axio has managed to patch up its financial health. For FY24, it reported a narrowed loss of ₹18 crore on a total income of ₹384 crore, down 86% in losses compared to the previous fiscal year. As of September 2024, the net worth of the company stood at ₹459 crore.
It precisely fits into the larger strategy of Amazon to go deeper into the fintech space of India on the back of Axio, which has firmly established expertise in the fields of digital lending and consumer credit.
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Source: Moneycontrol
News Desk
