Amazon, a major player in e-commerce, is reportedly close to its second acquisition in the Indian fintech sector, following its acquisition of Emvantage. The company is in advanced talks to acquire the online lending platform Axio (formerly Capital Float), according to two sources who spoke to Entrackr.
This would mark Amazon’s second acquisition this year, following its purchase of MX Player’s assets in May to enhance its Mini TV offerings in India.
“Amazon is set to buy Axio in an all-cash deal valued between $150-175 million,” said one source, who requested anonymity. “The terms of the deal have been finalized, and Amazon is currently conducting due diligence.”
Amazon is already an investor in Axio, having participated in its Rs 144 crore extended Series C round in 2018. The company currently owns around 8% of the Bengaluru-based lending platform.
Sources highlighted that the Ribbit Capital-backed Axio would bolster the buy now, pay later (BNPL) services for Amazon Pay.
“Over 80% of Axio’s volume comes from Amazon, while Amazon’s BNPL services are largely powered by Axio,” said another source, also requesting anonymity.
In addition to Amazon, Axio partners with Decathlon and Xiaomi. According to its website, Axio has provided credit to 9 million customers to date. The company acquired Elevation-backed Walnut for about $30 million in 2018.
Sources suggest that Amazon invested in Axio at a valuation of around $350 million in 2018, indicating that the current deal may not be highly lucrative for its investors and other stakeholders.
According to startup data intelligence platform TheKredible, Axio reported a 2X increase in revenue to Rs 220 crore in FY23, compared to Rs 110 crore in FY22. However, the company’s losses grew slightly to Rs 137 crore during the same period (FY23). It has yet to disclose its FY24 numbers.