Amazon completes acquisition of Indian lender Axio after RBI approval

Amazon has completed its $200 million acquisition of Axio, formerly Capital Float, after receiving approval from the Reserve Bank of India, deepening its push into digital lending services in India

Amazon completed its acquisition of Axio, formerly Capital Float, after receiving approval from the Reserve Bank of India (RBI), deepening the e-commerce giant's push into financial services in one of its most important markets.

 

The deal, which Amazon described as one of its largest in India, transforms a six-year partnership that has powered Buy Now Pay Later services for Amazon Pay into full ownership of the digital lending platform. The acquisition enables Amazon to tap credit products and other services that serve about 10 million customers and positions it to expand into merchant lending and compete more strongly with local rivals. While the company declined to disclose financial terms, people familiar with the matter said the deal was valued at roughly $200 million. All existing investors in Axio have exited as part of the transaction, while the company's founders are expected to remain at the helm.

 

 

"With only 1 in 6 Indian customers having access to checkout financing, growing access to credit is a fundamental priority for Amazon,” said Mahendra Nerurkar, VP, Payments, Amazon. “Over the past six years, our partnership with Axio has enabled us to unlock credit for more than 10 million customers. Axio’s digital lending expertise, combined with Amazon's reach, technology know-how, and bank relationships, will help us expand responsible lending to millions more customers and small businesses in the coming years." 

 

Nerurkar added: “Our vision has always been around how we simplify life and fulfil aspirations by making payments and financial services convenient, trusted, and rewarding.”

 

Axio, which has served over 10 million customers to date, will continue to operate under its current leadership team while integrating as a subsidiary of Amazon. Axio had assets under management (AUM) of Rs 2,200 crore.

 

"This union will allow us to accelerate our mission to expand access to credit,” said Sashank Rishyasringa and Gaurav Hinduja, co-founders at Axio. “With Amazon’s reach, customer centricity, and balance sheet depth, we are well-positioned to take digital lending to the next 100 million Indians – responsibly and at scale.”

 

The acquisition is expected to enhance Amazon Pay Later's checkout finance and term loan capabilities and create new opportunities for innovation in digital lending services across India, especially in underserved areas.

 

"India, in many ways, stands out versus many other countries in the world,” said Rishyasringa. “There is a set of infrastructure tools, like EKYC, the whole India Stack piece, UPI, that have been put in place with active sponsorship from the government and regulators, without which this journey would not be possible."