Amazon Acquires Axio to Expand Financial Services in India

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  Amazon has acquired digital lending platform Axio in a $200 million all cash deal.
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  The acquisition gives Amazon an NBFC licence in India for its fintech expansion.
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  Axio will continue to operate independently and strengthen Amazon’s digital credit offerings.

Amazon has completed the acquisition of Bengaluru based fintech startup Axio (formerly Capital Float) for $200 million in cash. With this deal, Amazon has also secured a Non-Banking Financial Company (NBFC) licence in India, enabling the e-commerce giant to expand its footprint in the digital financial services space.

Axio has served more than 10 million customers and manages Rs 2,200 crore in assets. It offers a range of credit products including personal loans and buy now, pay later services. The company reported revenue of Rs 351 crore in FY24, with a 50% year on year growth, and managed to reduce its losses to Rs 18 crore. Despite its growth, the startup has kept gross non-performing assets (GNPA) to around 3%.

Founded in 2013, Axio originally focused on SME lending but shifted to consumer credit in recent years. Amazon had previously invested in the company through its Series C round and it’s Smbhav Venture Fund, holding a 17-18% stake before the full acquisition.

Also Read: Amazon Seeks FDI Relaxation to Expand Ecommerce Exports from India

Post-acquisition, Axio will operate as an independent entity under Amazon’s ownership, allowing the tech giant to integrate Axio’s capabilities into its ecosystem. This strategic move reflects Amazon’s intent to offer embedded financial solutions and better serve Indian consumers and merchants with access to digital credit and lending.

Amazon’s expansion into fintech through Axio comes at a time when the Indian digital lending market is growing rapidly, offering new opportunities for consumer focused financial innovation.

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