The ecommerce giant, which has held a stake in Axio for six years, finalised the acquisition deal in December 2024 following due diligence, according to a statement released by the Bengaluru-based startup.
While the financial terms of the transaction remain undisclosed, sources familiar with the matter informed TechCrunch that the deal is valued at over USD 150 million. It’s worth noting that the acquisition still requires approval from India’s central bank.
Previously known as Capital Float, Axio has raised USD 135 million from investors such as Peak XV Partners, Ribbit Capital, and Elevation Capital. The company primarily offers credit solutions to self-employed individuals and households at checkout on platforms such as Amazon and MakeMyTrip. Axio claims to have a customer base exceeding 10 million, with a loan portfolio valued at more than USD 260 million.
India's BNPL market operates in a space where traditional credit access remains limited due to low credit card penetration and the reluctance of conventional banks to issue small loans. Axio’s lending platform aims to fill this gap by rapidly evaluating creditworthiness and providing decisions in seconds.
Despite its progress, Axio has faced challenges in sustaining growth, mirroring difficulties experienced by other startups in the sector. ZestMoney, another BNPL provider backed by Goldman Sachs, was sold to DMI Group in a fire sale last year after facing financial difficulties. Axio also competes with Bajaj Finance, an important player in India’s financial services sector.
The acquisition of Axio follows Amazon’s purchase of MX Player, a video streaming platform, in June last year. Amazon has invested over USD 10 billion in India as it continues to diversify its operations in one of its most important international markets.
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