axio's Sustainable Growth Strategy Yields 50% Revenue Increase and 95% Loss Reduction in FY24 By democratizing credit, axio caters a large volume of the customer segment that does not have a personal credit product at their disposal

India is a land of hard-working individuals and ambitious dreamers. Unfortunately, there is a large segment of customers who possess the desire to live aspirationally but have traditionally been challenged by an affordability gap. Founded in 2013 by Gaurav Hinduja and Sashank Rishyasringa, axio is closing the gap and democratizing access to credit.

axio's focus is crystal clear– to not just serve those who are creditworthy, but to make credit worthy for all. This includes those who have been traditionally under-served by the formal credit system. By democratizing credit, axio caters a large volume of the customer segment that does not have a personal credit product at their disposal. For context, out of 250-300 million online shoppers, approximately 40-50 million have credit cards.

"axio's checkout finance product is designed to enable millions of online shoppers to finance their purchases at checkout with transparency and ease. axio underwrites and approves customers instantly, helping them to convert their purchases into convenient, hassle-free EMIs," said Gaurav Hinduja, co-founder & MD, axio.

With its extraordinary product that underwrites and approves customers instantly, axio helps consumers convert their purchases into hassle-free, affordable EMIs—using real-time data from various sources such as credit bureaus and other sources.

This embedded finance product is available across various leading platforms including e-commerce, travel, electronics, home and kitchen, personal care, education, and health brands. Some of axio's partners include Amazon, Decathlon, Xiaomi, and Policybazaar.

In a very competitive market, axio stands out as India's leading Buy Now Pay Later (BNPL) provider. The axio app, with over 13 million downloads, offers a unique mix of pay later, personal credit, and money management features. Notably, over 60 per cent of its customer base is located in non-metros. Under its Pay Later products, over 70 per cent are offered as No-Cost offerings.

Presently, axio has over 10 million customers. An RBI-registered NBFC, the company claims to deliver loan approvals in under three seconds.

Resilience amid a challenging year

Despite a challenging financial year for many in the fintech sector, axio showcased remarkable resilience and growth in the market. Key growth metrics from FY22 to FY24 include a 2.5x increase in customers (from 4 million to 10 million), a 3.5x increase in disbursals (from INR 2,000 crore to INR 7,500 crore), and a 5x growth in Assets under Management (AuM).

Throughout this period, axio maintained a Non-Performing Assets (NPA) ratio of approximately 2 per cent demonstrating its prudent risk management.

"By focusing on sustainable growth and risk management, axio increased its revenues by 50% and reduced losses by 95% in FY24," said Sashank Rishyasringa, co-founder and MD, axio.

While fintech contemporaries have come under the scrutiny of the Reserve Bank of India, axio adheres strictly to the regulations set by the body. "The regulator is appropriately focused on safeguarding the end customer and systemic stability, while fostering innovation in credit access. Compliance and regulatory guidelines serve as guardrails, ensuring the sector grows responsibly," Rishyasringa explained.

The future trajectory

axio aims to triple its customer base by targeting the 200 million digitally native consumers in India, tapping into Tier 2 and Tier 3 towns, where consumption is on the rise. The company also intends to continue building strategic partnerships with leading brands, banks and other NBFCs.

"axio's aims to become the financial partner of choice for digitally native customers, offering them products that are transparent, the right level of leverage, and a choice of products to suit different needs,"concludes the duo.

Fact sheet:

• Amount of funding received: Equity raised: Rs 1,152 Cr ($160m), Debt raised: Rs 5,277 Cr ($660m)
• Year of inception: 2013
• Number of employees: 500
• No. of app downloads: 13 million+