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Amazon to Acquire Digital Lending Firm Axio, Awaits Regulatory Approval

• ByStartupStory     |    January 17, 2025

E-commerce giant Amazon is set to acquire Bengaluru-based digital lending platform Axio (formerly known as Capital Float), marking another significant move in the fintech space. The acquisition, finalized in December 2024 after thorough due diligence, is now pending regulatory approvals.

In a company blog post, Axio’s founders stated, “In December, after 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.”

They further added, “The proposed acquisition aims to build on a successful six-year business and equity partnership centered around delivering accessible and affordable credit to customers across the country.”

Amazon, already an investor in Axio under its NBFC arm CapFloat Financial Services, holds approximately 8% of the lending platform. The e-commerce major initially participated in Axio’s extended Series C funding round in 2018, contributing to a ₹144 crore investment.

The deal, according to sources close to the development, is reportedly valued at under $200 million.

Founded in 2013 by Sashank Rishyasringa and Gaurav Hinduja, CapFloat has successfully raised over $234 million (₹1,900 crore) in a mix of equity and debt, per Traxcn data. Key investors include Lightrock (21.8%), Elevation Capital (1.1%), Sequoia Capital (9.0%), Ribbit Capital (7.6%), Amazon (17.3%), Creation Investments (6.8%), and SOROS Economic Development Fund (3.5%).

The company rebranded its product suite under the Axio brand in July 2022, encompassing CapFloat, Walnut, and Walnut 369. Initially focused on SMEs, Axio later expanded into consumer finance, including credit solutions such as Buy Now, Pay Later (BNPL) at online checkout.

In 2018, Axio acquired a 60% stake in Walnut, a personal finance app, to strengthen its consumer finance offerings.

At a consolidated level, Axio reported a total income of ₹384 crore for FY24, narrowing its losses by 86% to ₹18 crore. As of September 2024, the company had a net worth of ₹459 crore.

The NBFC fintech claims a customer base of over 10 million and an Assets under Management (AUM) of ₹2,200 crore. Its Gross Non-Performing Asset (GNPA) ratio stands at 3%, although asset quality slightly moderated in the first half of FY25 due to stress in the unsecured lending segment.

Of the overall AUM, 63% is attributed to the checkout finance portfolio, with the remainder linked to personal loans, according to a credit rating firm.

The acquisition underscores Amazon’s commitment to deepening its presence in the fintech sector and expanding its credit offerings. With Axio’s established track record and innovative consumer finance solutions, Amazon aims to strengthen its ecosystem, making financial services more accessible and affordable across India.

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