Amazon completes acquisition of Axio

Amazon has completed the acquisition of Axio (formerly Capital Float), a digital lending and checkout finance provider in India, after getting approval from the Reserve Bank of India (RBI).

The acquisition adds to Amazon’s partnership with Axio, which has provided Buy Now Pay Later services for Amazon Pay in India for over six years.

Entrackrexclusively reported about the deal in July last year. As per sources, it could be a $150-175 million all cash deal. The Bengaluru-based company has raised $157 million in equity and $671 million in debt to date. According to startup data intelligence platform TheKredible, Amazon currently holds a 17.38% stake in the company. Besides Amazon, Decathlon and Xiaomi are also partners of Axio.

"With only 1 in 6 Indian customers having access to checkout financing, growing access to credit is a fundamental priority for Amazon,” said Mahendra Nerurkar VP, Payments Amazon. “Over the past six years, our partnership with axio has enabled us to unlock credit for more than 10 million customers. axio’s digital lending expertise combined with Amazon's reach, technology know-how and bank relationships will help us expand responsible lending to millions more customers and small businesses in the coming years."

Axio will continue to operate under its current leadership team while integrating as a subsidiary of Amazon.

Axio co-founders Sashank Rishyasringa and Gaurav Hinduja said the Amazon deal would help the company expand credit access and scale digital lending to the next 100 million Indians.

Axio recorded a 50% increase in revenue to Rs 351 crore in FY24 from Rs 235 crore in FY23. During FY24, the company's losses decreased to Rs 18 crore, compared to Rs 137 crore in the previous fiscal year. Its FY25 report has yet to come.