Amazon Acquires Indian Buy Now Pay Later Startup Axio
Amazon has agreed to acquire Indian buy now pay later startup Axio, deepening its push into financial services in one of its fastest-growing markets as it seeks to expand credit access to millions of underserved customers.
About Axio
The Bengaluru-headquartered startup, formerly known as Capital Float, specializes in providing small-sized credit to self-employed individuals and households at the point of sale on major e-commerce platforms including Amazon and MakeMyTrip.
Acquisition Details
The US technology group, which has held an equity stake in Axio for six years, signed the acquisition agreement in December after completing due diligence, the Indian startup said in a blog post.
Financial terms were not disclosed, but a source familiar with the matter told TechCrunch that the size of the deal is over $150 million.
About Axio’s Growth and Challenges
Axio has built a loan book of over $260 million and serves more than 10 million customers. The startup attempted to address the gap in traditional credit access by building a regulated lending platform that can assess creditworthiness rapidly, making credit decisions “within two clicks and five seconds.”
However, like many other startups in the category, Axio has struggled to maintain its growth. Goldman Sachs-backed ZestMoney, which operates in a similar space and was once valued at $450 million, also struggled and eventually was picked by a traditional firm in a fire sale.
Conclusion
The acquisition of Axio is a significant move by Amazon to expand its presence in the Indian financial services market. With Axio’s expertise in providing credit access to underserved customers, Amazon is likely to strengthen its position in the market and further expand its services to millions of customers.
FAQs
Q: What is Axio’s focus?
A: Axio specializes in providing small-sized credit to self-employed individuals and households at the point of sale on major e-commerce platforms.
Q: How big is the acquisition deal?
A: The size of the deal is over $150 million, according to a source familiar with the matter.
Q: What is the current loan book of Axio?
A: Axio has built a loan book of over $260 million.
Q: How many customers does Axio serve?
A: Axio serves more than 10 million customers.
