As Amazon ventures further into the field of financial services, the company has recently concluded a deal to acquire the Indian deferred payment startup, Axio. After thorough analysis, this strategic acquisition amounts to over 150 million dollars, thus strengthening Amazon’s presence in one of its fastest-growing markets. Axio, a specialist in point-of-sale credit for over 10 million customers, aims to fill the financial gaps in a country where access to traditional credit is limited. This transaction underscores Amazon’s commitment to investing in innovative solutions to transform the Indian financial landscape.
Amazon is set to acquire Indian fintech Axio, a significant player in the credit sector, for an amount exceeding 150 million dollars. This acquisition aligns with a strategy to strengthen Amazon’s presence in the financial services sector in India, one of its fastest-growing markets. Axio, specialized in point-of-sale financing on major e-commerce platforms, addresses a deficit in access to traditional credit in India with its regulated lending platform.
amazon commits to strategic acquisition of indian fintech axio
Amazon, the e-commerce giant, is stepping up in the field of financial services by announcing the acquisition of Axio, an Indian fintech startup specializing in point-of-sale credit. This strategic acquisition, valued at over 150 million dollars, reflects Amazon’s commitment to expanding its foothold in the financial market in India, one of its fastest-growing markets. Axio, formerly known as Capital Float, is known for its ability to offer quick and efficient credits, facilitating online purchases for millions of consumers.
axio’s breakthrough in the credit sector in india
Backed by several investors such as Peak XV Partners and Elevation Capital, Axio has established itself as a major player in a country where credit cards are still scarce. Offering credit solutions tailored to freelancers and households, particularly on platforms like Amazon and MakeMyTrip, Axio provides a viable alternative to traditional loans deemed costly by banks. Their innovative approach enables rapid assessment of client solvency, making credit decisions almost instantaneous. This promising strategy has borne fruit, with Axio having managed to serve over 10 million customers and manage a loan portfolio exceeding 260 million dollars.
implications and competition in the indian market
Amazon’s acquisition of Axio does not go unnoticed in a sector where competition is fierce. Facing other startups such as ZestMoney, backed by Goldman Sachs, and Indian financial giants like Bajaj Finance, Amazon is banking on this acquisition to strengthen its position. However, this transaction requires approval from the Indian central bank, highlighting the strategic stakes in a country where access to credit remains limited. The acquisition of startups focused on new financial technologies, like the recent acquisition of Tabby by a Saudi fintech, is becoming a recurring theme, offering new perspectives and investments in the credit sector.
