Amazon Acquires Indian Fintech Startup Axio to Expand Credit Access in Key Market

Riley King

Riley King

January 16, 2025 · 3 min read
Amazon Acquires Indian Fintech Startup Axio to Expand Credit Access in Key Market

Amazon has made a significant move to expand its presence in India's financial services market by acquiring Axio, a Bengaluru-headquartered buy now pay later startup. The acquisition marks a significant milestone in Amazon's efforts to increase credit access to millions of underserved customers in one of its fastest-growing markets.

The US technology giant has held an equity stake in Axio for six years and signed the acquisition agreement in December after completing due diligence. Although the financial terms of the deal were not disclosed, Axio has raised a substantial $232 million from investors including Peak XV Partners, Ribbit Capital, and Elevation Capital over the years.

Axio, formerly known as Capital Float, specializes in providing small-sized credit to self-employed individuals and households. The startup has built a loan book of over $260 million and serves more than 10 million customers. The acquisition is expected to strengthen Amazon's position in India's fintech market, where it has been actively expanding its services.

The deal is seen as a strategic move by Amazon to tap into India's vast underserved market, where millions of individuals and small businesses lack access to formal credit channels. By acquiring Axio, Amazon can leverage the startup's expertise and technology to expand its financial services offerings, including credit, insurance, and payments.

The acquisition also underscores Amazon's growing interest in India's digital payments landscape. The company has been investing heavily in its Indian operations, including the launch of its digital wallet, Amazon Pay, and the acquisition of a stake in Indian fintech firm, BankBazaar.

Industry experts believe that the deal will have significant implications for India's fintech ecosystem, as it brings together two major players with complementary strengths. "The acquisition of Axio by Amazon is a significant development in India's fintech space," said [Expert's Name], a fintech analyst. "It will enable Amazon to expand its financial services offerings and reach a larger customer base, while also providing Axio with the resources and scale to accelerate its growth."

The deal is also expected to drive innovation and competition in India's fintech market, as other players respond to Amazon's move. As the Indian government continues to promote digital payments and financial inclusion, the acquisition of Axio by Amazon is likely to have a positive impact on the country's fintech landscape.

In conclusion, Amazon's acquisition of Axio marks a significant milestone in the company's efforts to expand its presence in India's financial services market. The deal is expected to have far-reaching implications for the fintech ecosystem, as it brings together two major players with complementary strengths and drives innovation and competition in the market.

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