The big online shop Amazon has made a deal to buy Axio, a start-up in loans that was once called Capital Float. The news comes after a deep check into the company. Axio shared on its blog that the deal needs to get the right go-ahead from regulators.
Amazon’s plan to grow in finance
This buy comes after Amazon’s SMBhav Venture Fund put in a lot of cash. They led a $20 million funding round for Axio in August 2024. Amazon likes Axio because it fits into their plan to grow in finance in India. Last year, Amazon also put ₹600 crore into its Indian part, Amazon Pay India, showing that it wants to grow in the Indian finance world.
Axio’s rise and market strength
Axio, which started in 2013 and is based in Bengaluru, works as a non-bank finance company using the name Capfloat Financial Services. They have teamed up with banks and other non-bank firms to give loans to more people. So far, Axio has helped over 10 million customers and has goods worth ₹2,200 crore.
Strong support from backers
Many well-known investors like Lightrock, Elevation Capital, Sequoia Capital, Ribbit Capital, Amazon, Creation Investments, and the SOROS Fund have backed Axio’s rise. The start-up has received more than $234 million in equity and loans since it began. In 2021, Axio raised $50 million in equity with help from Lightrock India, and it had a value of $201 million.
Amazon’s growing role in India’s finance
Amazon has been part of Axio since 2018, when it joined in on a ₹144 crore Series C funding round. Now, Amazon has about an 8% share in Axio, putting it in a strong spot in India’s fast-growing finance world. Buying Axio will help Amazon become an even bigger name in India’s financial market.
This smart move shows that Amazon wants to grow its finance services in India, aiming to tap into a large market full of chances in digital finance and loan services.
