The fintech startup Axio (formerly Capital Float) is set to be acquired by e-commerce giant Amazon. After acquiring Emvantage, this will be the US-based company’s second acquisition in the Indian fintech market.
“In December, after the successful completion of due diligence, we signed an agreement with Amazon for a proposed acquisition of Axio. The transaction will now await the required regulatory approvals,” said Axio in a blogpost.
The proposed acquisition, according to Axio, intends to expand on a fruitful six-year business and equity partnership centered on providing consumers nationwide with easily accessible and reasonably priced credit.
With an AuM (assets under management) of Rs 2,200 crore and a 3% GNPA (gross non-performing assets), Axio says it has served over 10 million customers to date. Having previously invested in Axio through its Amazon Smbhav Venture Fund; Amazon recently contributed $20 million to the company’s Rs 144 crore extended Series C round in 2018.
The company, based in Bengaluru, had raised $671 million in debt and $157 million in equity.
The media reports that Amazon currently owns 17.38% of the business. In addition to Amazon, Axio has partnerships with Decathlon and Xiaomi.
Revenue for Axio increased by 50% from Rs 235 crore in FY23 to Rs 351 crore in FY24. The company’s losses in FY24 dropped to Rs 18 crore from Rs 137 crore in the prior fiscal year.
