Amazon Completes Acquisition of Fintech Startup Axio

Eight months after reaching a final agreement, e-commerce behemoth Amazon has finally acquired digital lending firm Axio (previously Capital Float). Amazon announced in a statement that the deal was finalized after receiving RBI regulatory approval. Axio will help Amazon expand its buy now, pay later (BNPL) product line in India. Notably, in 2018, Amazon used its Sambhav Venture Fund to make its first $22 million investment in Axio. Before ultimately choosing to buy it in January, it doubled down on the wager by investing an additional $20 million in the firm.Our collaboration with Axio has allowed us to unlock credit for over 10 million customers over the last six years. In the upcoming years, we will be able to extend responsible lending to millions more customers and small companies thanks to Axio's experience in digital lending, Amazon's reach, technological know-how, and bank partnerships," stated Mahendra Nerurkar, vice president for payments for emerging markets at Amazon.

Amazon described the deal as "one of the company's largest" in the nation, although it did not provide the transaction's financial details. According to sources cited in an ET report, the deal was valued at approximately $200 million (INR 1,762 crore). Amazon refused to respond to Inc42's inquiries regarding the acquisition price. Axio, which was founded in 2013 by Gaurav Hinduja and Sashank Rishyasringa, offers solutions for managing personal finances, credit, and pay later.Axio states that it has managed assets worth INR 2,200 Cr and has served around 10 million users to date. Since its founding, the Bengaluru-based firm has raised over $200 million from investors such as Elevation Capital, Peak XV Partners, and Lightrock. Amazon has been promoting the expansion of its fintech division at the time of the development. To take advantage of India's fintech market, it invested INR 350 Cr in Amazon Pay in April.