Amazon acquires NBFC axio to deepen embedded finance

Amazon.com Inc. said it has completed the acquisition of axio (formerly Capital Float), cementing a years-long partnership to expand embedded credit on and beyond its marketplace after receiving Reserve Bank of India approval.

While the terms weren’t disclosed, people familiar with the matter said the transaction size was between $150-$200 million, adding that the purchase ranks among Amazon’s larger deals in India.

The company framed the purchase as a push to widen access to checkout finance and small-business credit. “With only 1 in 6 Indian customers having access to checkout financing, growing access to credit is a fundamental priority for Amazon,” said Mahendra Nerurkar, VP, Payments at Amazon.

“Over the past six years, our partnership with axio has enabled us to unlock credit for more than 10 million customers. Axio’s digital lending expertise combined with Amazon’s reach, technology know-how and bank relationships will help us expand responsible lending to millions more customers and small businesses in the coming years,” Nerurkar added.

Axio will continue to operate under its current leadership as a subsidiary of Amazon. “Joining forces with Amazon marks an exciting new chapter for axio… With Amazon’s reach, customer centricity and balance sheet depth, we are well-positioned to take digital lending to the next 100 million Indians – responsibly and at scale,” co-founders Sashank Rishyasringa and Gaurav Hinduja said in the statement.

The acquisition gives Amazon a fully owned non-bank finance company in India—allowing it to originate and hold credit directly rather than relying solely on third-party partners.

That opens room for a broader suite of products: buy-now-pay-later at checkout, term consumer loans, and working-capital lines for marketplace sellers—especially salient at a time when unsecured personal loans have become harder to access amid lenders’ reduced risk appetite.

Over the past decade, axio has disbursed Rs 35,000 crore in loans and currently reports 1.8% NPAs, the founders said.

Formerly called Capital Float, the consumer finance startup had earlier raised funding from investors including Peak XV (formerly Sequoia India), Elevation Capital (formerly SAIF Partners), Ribbit Capital, and Amazon Smbhav Venture Fund.

In August last year, Axio secured $20 million in equity funding from Amazon Smbhav Venture Fund. Prior to this funding round, the company had raised $137 million in equity and $671 million in debt.

In 2021, it raised $50 million in an equity funding round led by Lightrock India, with participation from other existing and new investors. It has also received investments. The company has also raised funds from Omidyar Network India, University of California–Ratan Tata Fund, and Accel.