Amazon Inc. is set to acquire buy-now-pay-later firm Axio, the local fintech said in a blog on its website.
"In December, after successful completion of due diligence, we signed an agreement with Amazon for a proposed acquisition of Axio. The transaction will now await the required regulatory approvals," Axio said in its blog.
Axio, formerly known as Capital Float, started in 2013 and has assets under management worth Rs 2,200 crore. As of last count, it has a gross non-performing asset ratio of 3%. The fintech's founders include Sashank Rishyasringa and Gaurav Hinduja.
In August 2024, Axio raised $20 million from Amazon Smbhav Venture Fund. Aside from Amazon and Lightrock, other backers of the fintech include Sequoia Capital India, Ribbit Capital, Creation Investments, Peak XV and Elevation Capital.
Apart from pay later, the company offers other financial services, including checkout financing and personal finance solutions. Lending partners to Axio include Karur Vysya Bank, South Indian Bank, Aditya Birla Capital, Poonawalla Fincorp and Vivriti Capital.
This is the second Indian startup which Amazon has acquired in India. In June 2024, Amazon had acquired MX Player, which was later merged with Amazon in October, to create Amazon MX Player.
BNPL refers to a service where customers are able to purchase goods of their choice and later structuring repayments over a period of time. Typically, lenders market their products as zero cost installments. However, the interest cost is typically merged with a discounted product cost to ensure that the lenders get paid.
India's BNPL sector has faced severed headwinds in the years since the Covid-19 pandemic. ZestMoney, one of the most popular pay later service providers, shut its operations in 2023, owing to financial challenges.
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