axio (formerly known as Capital Float) said it has signed an agreement with Amazon for a proposed acquisition in a company blog post.
The Bangalore-based startup said the acquisition will help it reach more underserved customers, diversify its offerings and continue to strike the right balance between customer experience, risk management and affordability.
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Last year, axio raised $20 million from Amazon Smbhav Venture Fund and before that, the e-commerce major invested $22 million in the startup in a Series C round in 2018 .
E-commerce giant Amazon is set to acquire digital lending startup axio (formerly known as Capital Float). In a blog post, the Bangalore-based startup said it has signed an agreement with Amazon for a proposed acquisition.
“In December, after completing due diligence, we signed an agreement with Amazon for a proposed acquisition of axio. The transaction will now await the required regulatory approvals,” axio said in the blog.
Founded in 2013 by Gaurav Hinduja and Sashank Rishyasringa, axio offers pay later, credit and personal finance management solutions to its customers. It leverages technology to offer innovative financial products to its users.
axio said the acquisition will help it reach more underserved customers, diversify its offerings and continue to strike the right balance between customer experience, risk management and affordability.
axio said it has served over 10 million customers till date. It has assets under management of INR 2,200 Cr and 3% gross non-performing assets (GNPA). “Amazon has been an invaluable partner on this journey, and we have more to accomplish together,” the blog says.
Last year, axio raised $20 million (around INR 168 Cr) from the Amazon Smbhav venture capital fund. Before that, Amazon invested $22 million (around INR 190 Cr) in the startup during a follow-on Series C round in 2018.
Overall, the startup has raised more than $233 million in total funding to date and counts among its investors Elevation Capital, Peak XV Partners, Lightrock, among others.
In 2018, it acquired personal finance management startup Walnut to $30 million in cash and stock deal to strengthen its new consumer credit activity.
This acquisition will help Amazon strengthen its position in the growing Indian fintech market.
Amazon’s fintech arm, Amazon Pay, currently offers an instant credit service called Amazon Pay Later.
Fintech is one of the most funded sectors in India. Despite having seen a Funding down 19% year-on-year (YoY) to $2.5 billion in 2024, the fintech sector attracted the most capital last year. India’s fintech sector is expected to become a $2.1 billion market by 2030.