Amazon (NASDAQ:AMZN) has finalized its acquisition of Bengaluru-based digital lending startup Axio, formerly known as Capital Float.
As reported by local sources, the deal, completed eight months after the signing of a definitive agreement in December 2024, marks one of Amazon’s largest buyouts in India, with sources estimating the transaction value at approximately $200 million.
The acquisition, which received regulatory approval from the Reserve Bank of India (RBI), positions Amazon to deepen its presence in the country’s booming digital lending market, projected to reach $2.37 billion by 2030 with a compound annual growth rate of 30.2%.
Founded in 2013 by Gaurav Hinduja and Sashank Rishyasringa, Axio has established itself as a key player in India’s fintech ecosystem, offering innovative financial products such as buy now, pay later (BNPL) schemes, personal loans, and money management solutions.
The startup has served over 10 million customers and manages assets worth INR 2,200 crore (approximately $260 million), with a gross non-performing asset (NPA) rate of 3%.
Axio’s non-banking financial company (NBFC) license, held under its subsidiary CapFloat Financial Services, is a critical asset for Amazon, enabling the e-commerce giant to offer direct lending services without relying on third-party banks or NBFCs.
This acquisition aligns with Amazon’s broader strategy to enhance its financial services portfolio in India, where it already holds approvals for issuing payment wallets and distributing insurance policies.
Amazon’s journey with Axio began in 2018 with a $22 million investment through its Smbhav Venture Fund, followed by an additional $20 million in August 2024.
This six-year partnership has enabled Amazon to provide credit access to millions of customers, particularly through its Amazon Pay Later service.
The acquisition now grants Amazon full ownership of Axio, with existing investors, including Peak XV Partners, Ribbit Capital, Lightrock, and Elevation Capital, exiting the venture.
Despite the buyout, Axio will continue to operate independently, maintaining an arm’s-length relationship with Amazon while deepening its integration with the e-commerce platform’s BNPL and checkout finance offerings.
The timing of the acquisition is strategic, as Amazon’s rival, Flipkart, secured its own NBFC license in June 2025, becoming the first e-commerce player in India to offer direct lending.
Amazon’s acquisition of Axio positions it to compete directly with Flipkart, as well as other players in the BNPL space like ZestMoney, Simpl, and LazyPay.
By leveraging Axio’s customer base and technology, Amazon aims to tap into India’s lending tech market, expected to become a $1.3 billion opportunity by 2030.
Additionally, Amazon’s recent investments in its fintech arm, including INR 350 crore injected into Amazon Pay in April 2025, underscore its commitment to capitalizing on India’s fintech growth.
For Axio, the acquisition offers an opportunity to scale its operations and reach underserved customers.
The startup has raised over $200 million in equity and $671 million in debt since its inception, with a focus on maintaining robust asset quality.
In FY2024, Axio reported an operational profit of INR 81 crore but recorded a net loss of INR 18 crore due to provisions for non-performing loans.
Moving forward, Axio plans to innovate new credit products for both consumers and small businesses, expanding beyond Amazon’s platform to serve a broader market.
This acquisition not only aims to strengthen Amazon’s fintech capabilities but also seemingly signals a broader trend of e-commerce firms entering India’s digital lending space.
With regulatory changes, such as the RBI’s 2022 restrictions on the First Loss Default Guarantee model, companies like Amazon, Flipkart, and others like Jupiter and CRED are increasingly seeking NBFC licenses to navigate the evolving fintech sector.
As India’s digital economy continues to grow, Amazon’s acquisition of Axio potentially positions it as a key player in the race to enhance financial services in the region.