axio raises $20 Mn from Amazon Smbhav Venture Fund

Update: Online lending platform axio (formerly Capital Float) has raised $20 million from Amazon Smbhav Venture Fund.

The funds will be used to support further growth, including scaling lending operations, expanding use cases of checkout finance, and offering more credit products to customers, axio said in a press release.

The company claims to have reached $1 billion of annualized disbursals, and has maintained a low non-performing assets ratio (NPA) of 2-3%. Before this round, the Bengaluru-based company had raised $137 million in equity and $671 million in debt, as per its release.

Original story follows:

Online lending platform axio (formerly Capital Float) has raised Rs 167 crore (around $20 million) from existing investors via right issue.

The board at axio has passed a special resolution to issue 11,25,000 preference shares at an issue price of Rs 1,486 each to raise Rs 167 crore or $20 million, its regulatory filing accessed from the Registrar of Companies (RoC)shows.

The rights issue will be offered to existing shareholders at a ratio of 0.51 shares for every 1 share they currently hold, the filing further added.

While the firm didn’t disclose investors' names, Amazon is likely to have participated with substantial contribution. Amazon was also in talks for complete acquisition of axio. Entrackr exclusively reported this in July.

Amazon is an investor in axio which participated in the firm’s Rs 144 crore extended Series C round in 2018. Amazon used to own around 8% of the Bengaluru-based lending platform before the fresh round.

According to the startup data intelligence platform TheKredible, Light Rock was the largest external shareholder with 19.42% before this round, followed by Elevation which owned 13.84%. Peak XV, Creation, Amazon, and Ribbit and QED Innovations are its other backers.

In a recent statement to the media, axio’s co-founder Sashank Rishyasringa said that the firm saw 50% jump in its revenue and 95% reduction in its losses in the last fiscal year (FY24).

TheHeadAndTale reported the development first.

While axio is yet to disclose the exact numbers of FY24, the Bengaluru-based company reported 2X growth in its revenue to Rs 220 crore in FY23 as compared to Rs 110 crore in FY22. The Lightrock-backed firm’s losses grew marginally to Rs 137 crore in the fiscal year ending March 2023.

Update: The headline and story have been updated to include more inputs from axio's press release.