Amazon Set to Acquire Indian Fintech Firm Axio in Strategic Move

Amazon signed an agreement to acquire Bengaluru-based fintech company Axio (formerly Capital Float), marking its second acquisition in India's fintech sector after Emvantage. The deal, which follows successful due diligence completed in December, now awaits regulatory approvals.

The acquisition builds on a six-year partnership between companies focused on providing accessible credit solutions across India. Amazon has been an active investor in Axio, participating in its ₹144 crore extended Series C round in 2018 and recently investing $20 million through its Amazon Smbhav Venture Fund.

Axio has established a significant presence in India's digital lending space. It has over 10 million customers with assets under management of ₹2,200 crore and maintains a gross non-performing assets ratio of 3%. The company has raised substantial capital, including $157 million in equity and $671 million in debt funding.

According to startup intelligence platform TheKredible, Amazon holds a 27% stake in Axio. Fintech has also forged partnerships with major companies such as Decathlon and Xiaomi.

Financial records show that Axio doubled its revenue to ₹220 crore in FY23 from ₹110 crore the previous year. However, the company's losses increased marginally to ₹137 crore during the same period. The financial figures for FY24 have yet to be disclosed.

The acquisition is expected to strengthen Amazon's fintech capabilities in India, where digital lending and financial services have grown significantly in recent years.