
E-commerce giant Amazon is set to acquire Indian startup Axio, an online lending platform that offers point-of-sale financing. Amazon first invested in Axio six years ago during its Series C funding round and currently holds an 8 percent stake in the company.
“In December, following the successful completion of due diligence, we signed an agreement with Amazon for the proposed acquisition of Axio. The transaction will now await required regulatory approvals,” the company said in a blog post.
While the financial details of the deal are unknown, Axio — formerly known as Capital Float — has raised $232 million in 12 funding rounds and is valued at about $200 million, according to Tracxn. Key investors include Peak XV, Ribbit Capital, Lightrock, Elevation Capital, and others.
As of September 30, Axio’s shareholder structure includes Lightrock (19.8%), Elevation Capital (13%), Peak XV (10.7%), Ribbit Capital (8.9%), and SOROS Economic Development Fund (4%). Founders Sashank Rishyasaringa and Gaurav Hinduja collectively hold 7.7 percent stake in the company.
“We have achieved steady growth with strong asset quality, serving over 10 million customers till date, with assets under management (AuM) of ₹ 2,200 crore and 3% gross non-performing. is the (GNPA) ratio,” Axio noted in its statement. blog post. The company’s revenue grew 50% to ₹351 crore in FY24, while the loss narrowed significantly to ₹18 crore, from ₹137 crore in the previous fiscal.
Axio primarily lends to individuals at the point of sale on various e-commerce platforms, including Amazon. Although it started in 2014 by lending to the SME segment, it later moved into consumer finance in 2018 and acquired a 60% stake in Walnut, a personal finance app. Axio has partnered with merchants to offer buy it, pay later credit products during checkout.
Axio works with players like Bajaj Finance in a competitive consumer credit market. One of its competitors, ZestMoney, was acquired by DMI Finance last January in a fire sale after failing to navigate regulatory changes.