E-commerce behemoth Amazon acquires digital loan company Axio, gearing up for the upcoming festive season.

In a significant move, e-commerce giant Amazon has completed the acquisition of Axio, a leading digital lending and checkout finance provider based in Bengaluru, India. The financial terms of the deal were not revealed, but media reports estimate it to be around $200 million.

Founded in 2013 by Gaurav Hinduja and Sashank Rishyasringa, Axio has emerged as a key player in India's digital lending sector. Over the past six years, the company has powered Buy Now, Pay Later services for Amazon Pay, enabling credit to be provided to over 10 million customers.

The acquisition is one of Amazon's largest deals in India and is expected to aid in the expansion of digital lending services. The union between Axio and Amazon is set to leverage Amazon's reach, customer centricity, and balance sheet depth, along with Axio's digital lending expertise and technology know-how.

The acquisition was approved by the Reserve Bank of India, and Axio will continue to operate under its current leadership team as a subsidiary of Amazon. In the latest financial year, Axio reported a 50% jump in revenue to Rs 351 crore, up from Rs 235 crore in the previous fiscal year.

The acquisition aims to broaden credit access and strengthen Amazon's financial services offerings through Amazon Pay. Growing access to credit is a fundamental priority for Amazon, according to Mahendra Nerurkar, Vice President, Payments at Amazon India.

Sashank Rishyasringa and Gaurav Hinduja, Co-founders at Axio, stated that joining forces with Amazon marks an exciting new chapter for Axio, allowing them to accelerate their mission to expand access to credit responsibly and at scale.

Axio's partnerships with notable companies such as Decathlon and Xiaomi, in addition to its long-standing relationship with Amazon, position the company well to build on its product portfolio and existing partnerships to take digital lending to the next 100 million Indians.

The acquisition narrowed Axio's losses significantly, with the company reporting a Rs 18 crore loss in FY24, compared with Rs 137 crore in FY23. Prior to the acquisition, Axio had raised $157 million in equity and about $671 million in debt.

With this acquisition, Amazon continues to solidify its position in India's digital landscape, expanding its offerings beyond e-commerce to include financial services. The move is expected to benefit both Amazon and Axio's customers, as well as small businesses, by providing wider access to credit and strengthening financial inclusion in the country.

E-commerce behemoth Amazon acquires digital loan company Axio, gearing up for the upcoming festive season.