Fintech firm Axio raises $20 million from Amazon Smbhav Venture Fund

Consumer finance company will use investment to scale up loan book and 'expand credit offerings'

Axio on Friday raised $20 million in equity funding from the Amazon Smbhav Venture Fund as the digital consumer finance startup aims to expand lending and offer more credit products.

Axio has raised $232 million in total funding with the latest round, according to data from Tracxn, a market intelligence platform.

Before the latest funding, the company had raised $137 million in equity and $671 million in debt. The company in 2021 raised $50 million in equity funding led by Lightrock India with participation from other investors.

Bengaluru-based Axio previously raised funds from Peak XV (formerly Sequoia India), Elevation Capital (formerly SAIF Partners), Ribbit Capital and Amazon Smbhav Venture Fund.

“This (latest) investment will enable us to further scale our loan book, enhance our checkout finance offering, and expand credit offerings to existing customers. By combining product innovation with robust underwriting and risk controls, our aim is to unlock access to credit for the next 200 million customers across India,” said Axio co-founders Sashank Rishyasringa and Gaurav Hinduja, in a joint statement.

The startup has 10 million credit customers and $1 billion in annualised disbursals. It claims to have a non-performing assets (NPA) ratio of 2–3 per cent.

“This investment and our long-term relationship reflect our belief in Axio's ability to provide credit products and will enable them to expand innovative financial services to more customers while upholding responsible risk management,” said Abhijeet Muzumdar, vice-president & head, Amazon Smbhav Venture Fund and Corporate Development.

The e-commerce giant launched the $250 million Amazon Smbhav Venture Fund for investments in technology startups. The fund has made investments across sectors and has backed companies that include M1xchange, Smallcase and Innovist.