axio (fomerly known as Capital Float) said that it has signed an agreement with Amazon for a proposed acquisition in a company blog post
The Bengaluru-based startup said that the acquisition will help it reach more under-served customers, diversify its offerings, and continue to strike the right balance of customer experience, risk management, and affordability
Last year, axio raised $20 Mn from Amazon Smbhav Venture Fund and prior to that, the ecommerce major invested $22 Mn in the startup in a follow-on Series C round in 2018
Ecommerce major Amazon is set to acquire digital lending startup axio (formerly known as Capital Float). In a blog post, the Bengaluru-based startup said that it has signed an agreement with Amazon for a proposed acquisition.
“In December, after successful completion of due diligence, we signed an agreement with Amazon for a proposed acquisition of axio. The transaction will now await the required regulatory approvals,” axio said in the blog post.
Founded in 2013 by Gaurav Hinduja and Sashank Rishyasringa, axio offers pay later, credit and personal finance management solutions to its customers. It leverages technology to serve innovative financial products to its users.
axio said that the acquisition will help it reach more under-served customers, diversify its offerings, and continue to strike the right balance of customer experience, risk management, and affordability.
axio said it has served more than 10 Mn customers till date. It has assets under management of INR 2,200 Cr and 3% gross non-performing assets (GNPA). “Amazon has been an invaluable partner in this journey, and we have more to accomplish together,” the blog post said.
Last year, axio raised $20 Mn (about INR 168 Cr) from Amazon Smbhav Venture Fund. Prior to that, Amazon invested $22 Mn ( around INR 190 Cr) in the startup in a follow-on Series C round in 2018.
Overall, the startup has raised a total funding of over $233 Mn till date and counts the likes of Elevation Capital, Peak XV Partners, Lightrock, among others, as its investors.
In 2018, it acquired personal finance management startup Walnut for $30 Mn in a cash-and-stock deal to strengthen its new consumer-lending business.
The acquisition will help Amazon strengthen its position in the growing Indian fintech market.
Amazon’s fintech arm Amazon Pay currently offers instant credit service called Amazon Pay Later.
Fintech is one of the most funded sectors in India. Despite seeing a 19% year-on-year (YoY) decline in funding to $2.5 Bn in 2024, the fintech sector attracted the highest amount of capital last year. India’s fintech sector is expected to become a $2.1 Tn market by 2030.