Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Amazon agreed to buy India Buy now Axio start pay lateris deepening its push into financial services in one of its fastest-growing markets as it seeks to expand credit access to millions of underserved customers.
The US technology group, which has held an equity stake in Axio for six years, signed the acquisition agreement in December after completing due diligence, the Indian startup said in a blog post.
Financial terms were not disclosed. Formerly known as Capital Float, the Bengaluru-headquartered startup has raised $232 million over the years in equity and debt from investors including Peak XV Partners, Ribbit Capital, Elevation Capital.
The startup, which specializes in providing small-scale loans to self-employed individuals and households at the point of sale on major e-commerce platforms including Amazon and MakeMyTrip, said it serves more than 10 million customers and has already built a credit book. 260 million dollars.
Axio is one of a group of Indian startups operating in a market where access to traditional credit is limited – credit card penetration in India is low and conventional banks often don’t consider small-ticket loans profitable.
The startup sought to bridge this gap by building an adjustable credit platform that can rapidly assess creditworthiness, making credit decisions in “two clicks and five seconds.” But like many other startups in the category, Axio is struggling to maintain its growth. Goldman Sachs-backed ZestMoney, which operates in a similar space and was once valued at $450 million, also struggled and e.In the end, it was selected in a fire sale by a traditional firm.
Axio is Amazon’s second startup in India and has invested over $10 billion in it to date. Amazon has been obtained on-demand video streaming service MX Player in June of last year.
