Amazon Acquires Axio to Boost Digital Lending in India

Amazon has finalised the acquisition of Axio, previously known as Capital Float, a digital lending and checkout finance provider operating in India, following the approval from the Reserve Bank of India (RBI). This acquisition enhances Amazon’s collaboration with Axio, which has been delivering Buy Now Pay Later services for Amazon Pay in India for over six years.

Startup Superb exclusively reported on this deal in July last year. According to sources, this transaction could amount to an all-cash deal valued between $150 million and $175 million. The Bengaluru-based company has secured an impressive $157 million in equity and $671 million in debt funding to date. Sources from a startup data intelligence platform indicate that Amazon currently holds a 17.38% stake in Axio. In addition to Amazon, Decathlon and Xiaomi are also collaborating with Axio.

Amazon’s Vision for Digital Lending in India

Mahendra Nerurkar, the Vice President of Payments at Amazon, remarked that with only one in six Indian customers having access to checkout financing, improving access to credit is a vital priority for Amazon. Over the last six years, the partnership with Axio has allowed Amazon to provide credit solutions for more than 10 million customers. The synergy of Axio’s digital lending proficiency with Amazon’s extensive reach, technological expertise, and banking relationships is expected to drive responsible lending expansion to millions of additional customers and small enterprises in the future.

Operational Integration and Future Plans

Axio will continue its operations under its existing leadership team while functioning as a subsidiary of Amazon. Co-founders Sashank Rishyasringa and Gaurav Hinduja said that this deal with Amazon is poised to enhance the company’s ability to broaden credit access and scale digital lending to an additional 100 million Indians.

Financial Performance Overview

In FY24, Axio exhibited a 50% increase in revenue, climbing to Rs 351 crore from Rs 235 crore in FY23. Furthermore, the company’s losses saw a decline to Rs 18 crore during FY24, in contrast to Rs 137 crore in the preceding fiscal year. The financial results for FY25 have yet to be released.