Friday, 4 April 2025
27.2 C
Singapore
28.1 C
Thailand
20.3 C
Indonesia
26.9 C
Philippines

Amazon to acquire Indian BNPL startup Axio for over US$150M

Amazon is acquiring Indian BNPL startup Axio for over US$150M, strengthening its push into financial services in one of its fastest-growing markets.

Amazon is set to acquire Indian buy-now, pay-later (BNPL) startup Axio, which marks a deeper dive into financial services in one of its fastest-growing markets.

The e-commerce giant has held an equity stake in Axio for six years and signed the acquisition agreement in December, following due diligence. Axio shared this development in a blog post, though financial details remain undisclosed. Sources close to the matter revealed that the deal exceeds US$150 million. Regulatory approval from Indiaโ€™s central bank for the transaction is still pending.

Axioโ€™s journey and business model

Bengaluru-based Axio, previously known as Capital Float, has raised US$135 million from investors like Peak XV Partners, Ribbit Capital, and Elevation Capital. The startup specialises in providing credit solutions at the point of sale for major platforms such as Amazon and MakeMyTrip.

Axioโ€™s model bridges the gap in a country where access to traditional credit remains limited due to low credit card penetration and the high costs of servicing small-ticket loans. Axioโ€™s regulated lending platform evaluates creditworthiness swiftly, enabling decisions within “two clicks and five seconds.”

Axio boasts over 10 million customers and a loan book worth over US$260 million. The startupโ€™s focus on self-employed individuals and households has helped it tap into a segment often overlooked by conventional banks.

Challenges in Indiaโ€™s BNPL market

Despite its innovative approach, Axio, like other startups in the sector, has faced hurdles in sustaining growth. Last year, Goldman Sachs-backed ZestMoney, operating in a similar niche, was valued at $450 million but eventually sold to DMI Group in a fire sale.

The BNPL space in India is competitive, with companies like Bajaj Finance dominating the market. Startups must navigate a landscape where regulatory compliance, customer acquisition, and profitability remain critical challenges.

Amazonโ€™s growing investment in India

Acquiring Axio isnโ€™t Amazonโ€™s first venture into Indiaโ€™s startup ecosystem. In June, the company acquired MX Player, an on-demand video streaming platform. Over the years, Amazon has committed more than $10 billion to expand its presence in India, spanning e-commerce, entertainment, and financial services.

This deal signifies Amazonโ€™s commitment to offering flexible payment solutions for Indian consumers, aligning with its broader strategy of making online shopping more accessible and inclusive.

Hot this week

NVIDIA Blackwell platform sets new performance benchmark in MLPerf Inference v5.0

NVIDIAโ€™s GB200 NVL72 sets a new benchmark in MLPerf Inference v5.0 with 30x token throughput, leading AI factory performance.

Intelโ€™s future in the GPU market looks uncertain

Intel may not release a high-end Battlemage GPU, and Arc Celestialโ€™s future is unclear, leaving gamers with limited options in a challenging market.

Samsungโ€™s new AI fridges help find lost phones and control smart homes

Samsung's new AI-powered fridges can help you find lost phones and control smart home devices with voice commands, making life easier and more connected.

Tenable reveals privilege escalation flaw in Google Cloud Run

Tenable uncovers a privilege escalation flaw in Google Cloud Run, exposing risks linked to inherited permissions and service interdependencies.

Evento Seguro simplifies insurance access for event organisers in Brazil

Evento Seguro by Chubb makes event insurance easier for Brazilian organisers through a digital platform by Sympla and discovermarket.

Spotify introduces AI-powered ads and programmatic ad buying

Spotify unveils AI-powered ads and the Spotify Ad Exchange, making it easier for advertisers to reach Gen Z listeners with real-time bidding.

YouTube expands shopping affiliate programme in Singapore through Shopee partnership

YouTube teams up with Shopee to launch its Shopping affiliate programme in Singapore, giving creators new ways to monetise their content.

Misconceptions about STEM careers continue to deter young women in Singapore

New research shows stereotypes and lack of support are deterring young women from STEM careers, posing a risk to Singaporeโ€™s innovation goals.

Synagie and HKT launch ShopHK to help Hong Kong brands expand into Southeast Asia

Synagie and HKT launch ShopHK, helping Hong Kong SMEs tap into Southeast Asia's booming US$600 billion e-commerce market.

Related Articles