Amazon to Acquire Bengaluru-Based Digital Lending Firm Axio Amazon already holds an 8% stake in Axio, acquired during its INR 144 crore extended Series C round in 2018.
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E-commerce platform Amazon is poised to acquire Bengaluru-based digital lending firm Axio (formerly Capital Float), solidifying its presence in India's growing fintech sector.
The deal, finalised in December 2024 after comprehensive due diligence, awaits regulatory approvals, as per a company blog post by Axio's founders.
"In December, after successful completion of due diligence, we signed an agreement with Amazon for a proposed acquisition of Axio. The transaction will now await the required regulatory approvals," the founders wrote.
They added that the acquisition aims to build on a six-year partnership focused on providing accessible and affordable credit across India.
Amazon already holds an 8% stake in Axio, acquired during its INR 144 crore extended Series C round in 2018. The current deal reportedly values Axio at under USD 200 million, according to sources.
Founded in 2013 by Sashank Rishyasringa and Gaurav Hinduja, Axio began as CapFloat, initially targeting SMEs before expanding into consumer finance. The company pioneered "Buy Now Pay Later" (BNPL) services by partnering with online merchants.
In 2018, CapFloat acquired a 60% stake in Walnut, a personal finance app, later rebranding its offerings under the Axio umbrella in 2022.
Axio has attracted marquee investors, including Lightrock (21.8%), Sequoia Capital (9%), Ribbit Capital (7.6%), and Amazon (17.3%). The firm has raised over INR 1,900 crore in equity and debt funding.
Financially, Axio narrowed its losses by 86% to INR 18 crore in FY24, with total income reaching INR 384 crore. The company boasts a net worth of INR 459 crore as of September 2024 and serves over 10 million customers. Its assets under management (AUM) stand at INR 2,200 crore, with a Gross Non-Performing Asset (GNPA) ratio of 3%.
Despite slight stress in unsecured lending in FY25, the acquisition aligns with Amazon's strategy to strengthen its financial services arm, leveraging Axio's expertise in digital personal loans and BNPL solutions to cater to a wider consumer base.
