Amazon to Acquire Online Lending Platform Axio in $150-175 Million Deal
- ByStartupStory | July 31, 2024
Amazon is set to acquire online lending platform Axio (formerly Capital Float) in a deal valued between $150 million and $175 million. This acquisition marks Amazon’s second significant entry into the Indian fintech space, following its acquisition of Emvantage. Two sources familiar with the matter confirmed the development to Entrackr.
“The terms of the deal have been finalized, and Amazon is currently conducting due diligence,” said one source, who requested anonymity.
Amazon already holds an 8% stake in Axio, acquired during the platform’s Rs 144 crore Series C round in 2018. The e-commerce giant plans to leverage Axio to bolster its buy now pay later (BNPL) service for Amazon Pay, aiming to enhance its financial services offerings in India.
“The acquisition makes absolute sense for both companies as they are over-dependent on each other. Over 80% of Axio’s volume comes from Amazon, while the e-commerce major’s BNPL is largely powered by Axio,” said another source, who also wished to remain unnamed.
Axio, headquartered in Bengaluru, has provided credit to 9 million customers to date and counts Decathlon and Xiaomi among its partners. In 2018, Axio acquired Walnut, an Elevation-backed financial management app, for about $30 million.
Sources indicate that Amazon initially invested in Axio at a valuation of approximately $350 million in 2018, suggesting that the current deal may not be highly lucrative for Axio’s investors and stakeholders.
Financially, Axio reported a 2x growth in revenue, reaching Rs 220 crore in FY23 compared to Rs 110 crore in FY22. However, the company’s losses also increased marginally to Rs 137 crore during the same period. Axio has yet to disclose its FY24 numbers.
This acquisition comes on the heels of Amazon’s purchase of MX Player’s assets in May, aimed at enhancing its Mini TV offerings in India. This move underscores Amazon’s continued investment in expanding its digital ecosystem in the country.
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