Amazon to Acquire Indian BNPL Startup Axio for $150M+

Amazon to Acquire Indian Fintech Startup Axio

Amazon has reached an agreement to purchase Axio, an Indian buy-now, pay-later (BNPL) company. This acquisition signifies a strengthened commitment to expanding its financial services offerings within one of its most rapidly expanding markets.

Expanding Financial Services in India

The e-commerce giant has maintained an equity position in Axio for the past six years. The definitive acquisition agreement was finalized in December, following a thorough due diligence process, as announced by Axio in a recent blog post.

Deal Details and Regulatory Approval

While the specific financial details of the transaction remain undisclosed, sources familiar with the matter have indicated to TechCrunch that the deal's value exceeds $150 million. Finalization of the acquisition is contingent upon receiving approval from the Reserve Bank of India, the nation’s central bank.

Axio’s Funding and Growth

Previously operating as Capital Float, the Bengaluru-based startup has secured $135 million in funding from prominent investors. These include Peak XV Partners, Ribbit Capital, and Elevation Capital throughout its operational history.

Focus on Under-Served Customers

Axio specializes in providing credit solutions to self-employed individuals and households directly at the point of sale. Its services are integrated with major e-commerce platforms, such as Amazon and MakeMyTrip. The company reports serving over 10 million customers with a loan portfolio valued at more than $260 million.

Addressing Credit Access Challenges

Axio, along with similar startups in India, addresses a significant market need. Access to traditional credit remains limited in the country due to low credit card penetration and the unprofitability of small loans for conventional banks.

Rapid Credit Assessment

The startup’s regulated lending platform is designed to rapidly assess customer creditworthiness. This enables quick credit decisions, reportedly made “within two clicks and five seconds.”

Challenges in the BNPL Sector

Despite its growth, Axio has faced challenges common to many BNPL startups. ZestMoney, a competitor backed by Goldman Sachs and previously valued at $450 million, experienced difficulties and was ultimately acquired by DMI Group in a distressed sale last year.

Competitive Landscape

Axio operates in a competitive market, facing competition from established financial services companies like Bajaj Finance, a dominant player in the Indian financial sector.

Amazon’s Continued Investment in India

This acquisition marks Amazon’s second startup purchase in India within the last year, following the acquisition of MX Player in June. To date, the technology giant has invested over $10 billion in the Indian market.