Ecommerce giant Amazon has signed a deal to acquire Axio, a fintech lending startup previously known as 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.
This move comes after Amazon Smbhav Venture Fund led a $20 million equity funding round in Axio in August last year.
Amazon first invested in Axio back in 2018, showing its long-term interest in the company.
The acquisition is part of Amazon’s larger plan to grow its financial services in India. Axio, based in Bengaluru, runs a non-banking finance company (NBFC), Capfloat Financial Services, and partners with banks and other NBFCs for co-lending initiatives.
Axio has supported over 10 million customers and manages assets worth ₹2,200 crore, according to the company.
In 2021, Axio raised $50 million in equity funding at a post-money valuation of $201 million. Lightrock India led the funding, with participation from both new and existing investors, as per Tracxn.
Other prominent investors in Axio include Peak XV Partners, Elevation Capital, and Ribbit Capital.
