Amazon to acquire BNPL startup Axio
This marks Amazon's second acquisition in the financial services space after acquiring Delhi-based Emvantage Payment in 2016 for an undisclosed amount.
In a bid to expand its financial offerings, Amazon is set to acquire buy-now-pay-later startup Axio for an undisclosed amount.
The deal awaits regulatory approvals, after being closed in December after successful due diligence, Axio shared in a blog post.
According to a report by Entrackr, which cites sources, Axio was acquired for $150 million-$175 million in an all-cash deal.
"Axio has filed an application with the regulator (RBI) for a change in control to Amazon and is awaiting approval. Post approval, Amazon’s proposed acquisition of Axio would be completed," said a spokesperson from Amazon.
Formerly called Capital Float, the consumer finance startup had earlier raised funding from investors including Peak XV (formerly Sequoia India), Elevation Capital (formerly SAIF Partners), Ribbit Capital, and Amazon Smbhav Venture Fund.
In August last year, Axio secured $20 million in equity funding from Amazon Smbhav Venture Fund.
Prior to this funding round, the company had raised $137 million in equity and $671 million in debt. In 2021, it raised $50 million in an equity funding round led by Lightrock India, with participation from other existing and new investors.
Axio, which provides pay-later facilities to shoppers at the point of sale on ecommerce platforms like Amazon and MakeMyTrip, has served over 10 million customers till date. It has assets under management worth Rs 2,200 crore and gross non-performing assets of 3%, according to the blog post.
The acquisition of Axio marks Amazon's second acquisition in the financial services space. In 2016, it acquired Delhi-based Emvantage Payment for an undisclosed amount.
In October last year, Amazon acquired certain assets of India-based OTT platform MX Player to spruce up its streaming offerings.
Amazon will merge its free ad-supported video-on-demand services with MX Player into one service, Amazon MX Player. The combined service will give users access to shows in regional languages along with international content.
(The copy was updated with a quote from Amazon.)
Edited by Swetha Kannan