Amazon Acquires Axio: A Major Move in the Indian Fintech Landscape
Amazon’s Acquisition Completed with RBI Approval
Amazon has successfully completed its acquisition of the digital lending startup Axio, previously known as Capital Float. This significant step follows the receipt of regulatory approval from the Reserve Bank of India (RBI), marking an essential progression in Amazon’s efforts to enhance its financial services in India.
Enhancing BNPL Services in India
The acquisition aims to bolster Amazon’s Buy Now, Pay Later (BNPL) offerings within the Indian market. With Axio’s advanced credit management solutions, Amazon plans to expand and improve its financing options, benefiting a growing number of customers and small businesses.
Investment History and Strategic Expansion
Amazon’s relationship with Axio dates back to 2018, when it first invested $22 million through its risk capital fund, Sambhav. This was followed by an additional $20 million investment as part of Axio’s growth strategy. The decision to acquire the startup solidifies Amazon’s long-term commitment to enhancing credit accessibility in India.
Expertise and Reach Combined
Mahendra Nerurkar, Amazon’s Vice President for emerging markets, emphasized that Axio’s digital loan expertise, combined with Amazon’s expansive reach and technological resources, positions the company to offer responsible lending solutions to millions. Over the past six years, their partnership has already enabled access to credit for over 10 million customers.
Financial Details and Market Impact
While Amazon has not disclosed the financial specifics of the transaction, reports suggest the deal could be valued around $200 million (approximately INR 1,762 crore). This acquisition is viewed as one of the most significant in the Indian fintech market, as Amazon continues to expand its footprint in this lucrative sector.
Axio’s Track Record in Finance Management
Founded in 2013 by Gaurav Hinduja and Sashank Rishyasringa, Axio has established itself as a leader in credit and personal finance management solutions. The Bengaluru-based startup has served approximately 10 million customers and manages assets worth INR 2,200 crore, garnering investments from notable investors like Elevation Capital and Peak XV Partners.
The Future of Fintech in India
This acquisition is timely, as Amazon intensifies its efforts to grow its fintech division. Amazon Pay has already made significant investments, including a recent INR 350 crore boost to capitalize on India’s burgeoning fintech market, projected to be a $1.3 billion opportunity by 2030. Competing with companies like Zestmoney and Simpl, Amazon Pay’s access to Axio’s customer base will enhance its service offerings in the competitive BNPL landscape.
Competitive Landscape: Flipkart Enters the Arena
As Amazon moves forward, its rival Flipkart has also made strides in the lending space. Recently, Flipkart received an RBI license to provide loans directly on its platform, further intensifying competition in the market. This dynamic landscape suggests a rapidly evolving credit environment in India, with substantial opportunities for both companies to lead in the BNPL segment.