Amazon Expands Financial Footprint with Acquisition of Indian Fintech Axio

Amazon has secured a deal to acquire the buy now, pay later startup, Axio. This acquisition marks a significant step by Amazon to enhance credit accessibility for millions in a rapidly growing market segment.

Axio, previously known as Capital Float, has been under Amazon’s investment umbrella for six years.

The completion of this acquisition follows a thorough due diligence process completed in December, as announced in an Axio blog post. The financial specifics of the deal remain undisclosed.

The Bangalore-based startup has successfully carved out a niche in providing modest credit amounts to self-employed people and households during online purchases.

Notably, platforms like Amazon and MakeMyTrip feature these credit options. Axio boasts over 10 million customers and a robust loan book surpassing $260 million.

Credit access in India is notoriously limited, with low credit card uptake and traditional banks often bypassing smaller loans due to profitability concerns.

Axio aims to bridge this gap with a regulated lending platform that promises quick credit assessments—decisions are made within seconds.

However, the path hasn’t been entirely smooth. The competitive landscape includes companies like ZestMoney, once valued at $450 million but recently sold in a fire sale.

This sector’s challenges reflect the broader struggle among startups to sustain growth amid harsh market realities.

This acquisition is Amazon’s second major investment in an Indian startup, following the purchase of MX Player, an on-demand video service, last June.

To date, Amazon has invested over $10 billion in its Indian operations, signaling a long-term commitment to expanding its footprint in the region.