Amazon said that the acquisition has been completed following receipt of regulatory approval from the RBI.
Ecommerce giant Amazon has completed the acquisition of digital lending startup Axio (formerly Capital Float) eight months after it entered into a definitive agreement.
In a statement, Amazon said that the acquisition has been completed following receipt of regulatory approval from the RBI.
Amazon will use Axio to boost its buy now, pay later (BNPL) offering in India. Notably, Amazon made its first investment of $22 Mn in Axio via its Sambhav Venture Fund in 2018. It doubled down on the bet by pumping another $20 Mn in the startup, before finally deciding to acquire it in January.
“Over the past six years, our partnership with axio has enabled us to unlock credit for more than 10 Mn 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,”
Amazon’s VP for payments for emerging markets, Mahendra Nerurkar, said.
Amazon did not disclose the financial details of the transaction but called it “one of the company’s largest” in the country. A report by ET stated that the deal was valued at around $200 Mn (INR 1,762 Cr), citing sources. Amazon declined to comment on Inc42’s queries on the acquisition cost.
Founded in 2013 by Gaurav Hinduja and Sashank Rishyasringa, axio provides pay later, credit and personal finance management solutions.
axio claims to have served about 10 Mn customers till date and has assets under management of INR 2,200 Cr ($249,5 mn). The Bengaluru-based startup has raised more than $200 Mn since its inception from investors like Elevation Capital, Peak XV Partners, Lightrock, among others.
The development comes at a time when Amazon has been pushing the growth of its fintech arm. It pumped INR 350 Cr ($39,7 mn) in Amazon Pay in April to capitalise on India’s fintech space.
This acquisition will give Amazon Pay access to axio’s customers base and help it tap India’s lending tech market, which is expected to become a $1.3 Bn opportunity by 2030
Amazon Pay competes with the likes of ZestMoney, Simpl, LazyPay, among others in the buy now, pay later segment.
Meanwhile, Amazon’s rival Flipkart also received its NBFC licence from the RBI in June this year to offer loans directly to consumers and sellers on its platform. Flipkart also has a ‘Flipkart Pay Later offering.
Source: Inc42
