Axio confirms acquisition agreement with Amazon

E-commerce major Amazon is all set to acquire fintech company Axio (formerly Capital Float). This will be the second acquisition for the US-based company in the Indian fintech space, following its acquisition of Emvantage.

“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.

Entrackr was the first to report on this deal in July last year. 

According to Axio, the proposed acquisition aims to build on a successful six-year business and equity partnership focused on delivering accessible and affordable credit to customers across the country.

Axio claims to have served over 10 million customers to date, with an AuM (assets under management) of Rs 2,200 crore and a 3% GNPA (gross non-performing assets). Amazon, already an investor in Axio, participated in its Rs 144 crore extended Series C round in 2018 and recently invested $20 million in Axio through its Amazon Smbhav Venture Fund.

The Bengaluru-based company had raised $157 million in equity and $671 million in debt.

According to startup data intelligence platform TheKredible, Amazon currently holds a 17.38% stake in the company. Besides Amazon, Decathlon and Xiaomi are also partners of Axio.

Axio recorded a 50% increase in revenue to Rs 351 crore in FY24 from Rs 235 crore in FY23. During FY24, the company's losses decreased to Rs 18 crore, compared to Rs 137 crore in the previous fiscal year.