Wednesday, 12 February 2025
25.4 C
Singapore
23 C
Thailand
20.6 C
Indonesia
26.1 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

How Meta’s content moderation shift is redefining social media

Metaโ€™s decision to relax its content moderation policies is reshaping social media, balancing free speech and user safety. This shift impacts users, advertisers, and the future of digital communication.

Apple set to unveil new iPhone SE and PowerBeats Pro 2 on February 11

Apple is set to launch the iPhone SE and PowerBeats Pro 2 on Feb 11, featuring design updates, AI, and health tech.

Third-party iPhone SE 4 cases released ahead of expected launch

Third-party case makers reveal designs for Appleโ€™s upcoming iPhone SE 4, confirming MagSafe support and hinting at a new Action button.

AI investment soars to US$110B in 2024 as startup funding declines

AI investments hit $110B in 2024, soaring 62% as tech startup funding drops 12%. The U.S. leads, but Europe lags. Open-source AI may reshape trends.

Tiger Brokers Singapore launches traineeship programme to develop financial talent

Tiger Brokers Singapore launches a six-month traineeship programme to train remisiers, blending technology and mentorship to support the local stock market.