Ecommerce major Amazon has signed an agreement to acquire fintech lending startup Axio, formerly Capital Float. 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, Axio said in a blog post.
The development follows Amazon Smbhav Venture Fund leading a $20 million equity funding in Axio in August last year. Amazon first backed Axio in 2018. The acquisition aligns with Amazon's broader strategy to expand its financial services offerings in India.
The Bengaluru-based startup operates a non-banking finance company (NBFC), Capfloat Financial Services, and also works through co-lending partnerships with banks and other NBFCs. Axio has served over 10 million customers and manages assets worth Rs 2,200 crore, it said.
In 2021, Axio raised $50 million in equity funding, led by Lightrock India, along with participation from existing and new investors, at a post-money valuation of $201 million, as per Tracxn. Other investors of Axio include Peak XV Partners, Elevation Capital and Ribbit Capital.
