The new funds will be used to drive growth, expand lending operations, expand cash register financing use cases and introduce more credit products to customers throughout their financial lifecycle, it said in a statement Friday.
The funding comes as equity transactions gain momentum in the digital credit sector focused on micro, small and medium enterprises (MSMEs).
August 14, ET Flexiloans in talks with a group of global and domestic investors to raise approximately $35 million in new funding. Similarly, Indifi Technologies, another SME lender, raised about $35 million last year.
Bengaluru-based Axio, formerly Capital Float, operates with a non-banking financial company (NBFC) license, offering loans through its own books and through co-lending partnerships with banks and other NBFCs.
Axio says it has reached about 10 million credit customers, with annualized disbursements of $1 billion.
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Prior to this round, Axio had raised $137 million in equity and $671 million in debt. In 2021, the company secured $50 million in equity funding led by Lightrock India, along with other existing and new investors, reaching a post-money valuation of $201 million, according to Tracxn.
The company has also received investments from investors including Peak XV, Elevation Capital and Ribbit Capital.
“This investment will enable us to further expand our loan portfolio, enhance our cash financing offering and extend credit offerings to existing customers. By combining product innovation with rigorous underwriting and risk controls, we aim to open access to credit to the next 200 million customers across India,” Sashank Rishyasringa and Gaurav Hinduja, co-founders of Axio, said in a joint statement.
Specialization in e-commerce Amazon launched $250 million Smbhav Venture Fund in 2021initially focused on the agriculture and healthcare sectors. The fund has since expanded to include direct-to-consumer (D2C) brands and sectors such as fintech and gaming. Its portfolio includes brands such as Acko, Cashify, Fitterfly and M1xchange.
“We are excited to support Axio in their mission to provide accessible and responsible digital credit solutions in India. This investment and our long-term relationship reflect our belief in Axio’s ability to deliver credit products and will enable them to expand their innovative financial services offerings to more customers while maintaining responsible risk management,” said Abhijeet Muzumdar, Vice President and Head of Amazon Smbhav Venture Fund and Corporate Development.