Amazon to Acquire Fintech Company Axio
E-commerce giant Amazon is poised to acquire the fintech firm Axio, previously known as Capital Float. This transaction marks Amazon’s second venture into the Indian fintech sector, following its acquisition of Emvantage.
In a recent blog post, Axio stated that an agreement was reached with Amazon for the intended acquisition after thorough due diligence was completed in December. The next step involves awaiting the necessary regulatory approvals.
The startup Superb first reported on this agreement in July of last year.
Objectives of the Acquisition
The acquisition aims to enhance a fruitful six-year collaboration centred on providing accessible and affordable credit solutions to customers nationwide.
Axio’s Achievements
- Over 10 million customers served to date.
- Assets under management (AuM) of Rs 2,200 crore.
- Gross non-performing assets (GNPA) at 3%.
Previous Investments
Amazon, an existing investor in Axio, participated in the firm’s Rs 144 crore extended Series C funding round in 2018. Recently, Amazon also invested $20 million in Axio via its Amazon Smbhav Venture Fund.
Funding Overview
The Bengaluru-based fintech has raised a total of $157 million in equity and $671 million in debt.
Current Stake and Partnerships
According to various sources from a startup data intelligence platform, Amazon holds a 27% stake in Axio. Other key partners include Decathlon and Xiaomi.
Financial Performance
In FY23, Axio reported a 2X revenue growth, reaching Rs 220 crore, up from Rs 110 crore in FY22. However, the company’s losses increased slightly to Rs 137 crore during the same period (FY23). The figures for FY24 remain undisclosed.