Exclusive: Amazon nears complete acquisition of Axio in all cash deal

E-commerce major Amazon appears to be inches away from its second acquisition in the Indian fintech space, after Emvantage. The company is in advanced discussion to acquire online lending platform Axio (formerly Capital Float), two sources told Entrackr.

This would be the second acquisition by Amazon this year. It had acquired MX Player’s assets in May to scale its Mini TV offerings in India.

“Amazon is set to buy Axio in a $150-175 million all cash deal,” said one of the sources requesting anonymity. “The terms of the deal have been finalized, and it’s (Amazon) currently conducting due-diligence.”

Amazon is already an investor in Axio which participated in its Rs 144 crore worth extended  Series C round in 2018. Currently, the firm owns around 8% of the Bengaluru-based lending platform.

Sources emphasized that Ribbit Capital-backed Axio would power buy now pay later (BNPL) for Amazon Pay.

“The acquisition makes absolute sense for both companies as they are over-dependent on each other. Over 80% of Axio’s volume comes from Amazon, while the e-commerce major’s BNPL is largely powered by Axio,” said another source who also wished not to be named.

Besides Amazon, Decathlon and Xiaomi are Axio’s other partners. As per its website, the company offered credit to 9 million customers till date. Axio acquired Elevation-backed Walnut for about $30 million in 2018.

Sources indicate that Amazon invested in Axio at a valuation of around $350 million in 2018. This essentially means that the deal isn’t very lucrative for its investors and other stakeholders.

Queries sent to Amazon and Axio didn’t elicit any immediate response. We will update the story in case they do.

According to startup data intelligence platform TheKredible, Axio reported 2X growth in its revenue to Rs 220 crore in FY23 as compared to Rs 110 crore in FY22. However, the firm’s losses grew marginally to Rs 137 crore in the same period (FY23). It’s yet to disclose FY24 numbers.