Amazon completes its Axio acquisition, securing a direct lending license to expand credit access in India.
On Thursday, September 4, 2025, Amazon finalised its acquisition of Axio, a Bengaluru-based digital lending firm, securing a non-banking financial company (NBFC) license in India to enhance its financial services offerings. The deal, valued at approximately USD 200 million, aims to broaden credit access for underserved consumers.
The Amazon Axio acquisition positions India as a key battleground for fintech innovation, enabling a global tech giant to directly influence South Asia’s rapidly growing digital lending market, which serves millions of unbanked and underbanked individuals.
Details of the Amazon Axio Acquisition
Amazon announced the completion of its acquisition of Axio, previously known as Capital Float, following approval from the Reserve Bank of India (RBI). The deal, initially signed in December 2024 after due diligence, marks one of Amazon’s largest buyouts in India. “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 during Axio acquisition, Vice President, Payments at Amazon India.
Axio, founded in 2013 by Sashank Rishyasringa and Gaurav Hinduja, specialises in buy-now-pay-later (BNPL) services and consumer loans, serving over 10 million customers with assets under management (AUM) of INR 2,200 crore (approximately USD 254 million) and a gross non-performing asset (GNPA) ratio of 3%.
The acquisition builds on a six-year partnership during which Axio powered Amazon Pay Later, facilitating seamless credit options for Amazon’s e-commerce customers.
The deal enables Amazon to leverage Axio’s NBFC license, allowing direct lending without relying solely on third-party financial institutions. According to industry sources, the transaction was an all-cash deal, with Axio’s existing investors, including Peak XV Partners, Ribbit Capital, Lightrock, and Elevation Capital, exiting fully, while the founders will continue to lead operations.
Strategic Implications for India’s Fintech Sector
The Amazon Axio acquisition is a significant step in Amazon’s strategy to build a full-stack financial services ecosystem in India. The NBFC license complements Amazon’s existing licenses for mobile wallets, online payment aggregation, and insurance broking, positioning it as a formidable player in India’s fintech landscape.
With only 15% of Indians having access to formal credit, the acquisition aligns with the government’s push for financial inclusion, particularly for underserved segments like self-employed individuals and small businesses.
Axio’s expertise in rapid credit assessment—described as “within two clicks and five seconds”—enhances Amazon’s ability to offer innovative products like Amazon Pay Later, personal loans, and potentially small business lending.
As of September 2024, 63% of Axio’s loan book was in checkout finance, with the remainder in personal loans, according to a Crisil rating document.
The integration of Axio as a wholly-owned subsidiary will allow Amazon to scale these offerings across its e-commerce platform and beyond, including partnerships with other merchants in categories like food delivery.
Challenges and Market Context
India’s digital lending sector has faced challenges, including regulatory scrutiny from the RBI, which tightened norms on unsecured loans in 2023. This led to consolidation, with competitors like ZestMoney shutting down and others pivoting to longer-tenure products.
Axio’s low GNPA ratio of 3% reflects disciplined underwriting, but the firm reported a net loss of INR 18 crore in FY24, despite revenues of INR 384 crore, indicating financial pressures in the unsecured lending space.
Amazon’s move comes as competitors like Flipkart, which secured an NBFC license in March 2025, also aim to offer direct lending. The Amazon Axio acquisition, however, makes Amazon the first major tech company to hold an NBFC license in India, giving it a competitive edge. Reports indicate that Amazon has not yet disclosed any plans for additional capital infusion into Axio post-acquisition.
Background
Axio, founded in 2013, initially focused on small and medium enterprise (SME) financing before pivoting to consumer lending during the COVID-19 pandemic.
It raised USD 137 million in equity and USD 671 million in debt from investors like Sequoia India (now Peak XV), Ribbit Capital, and Amazon’s Smbhav Venture Fund, which invested USD 20 million in August 2024. The company’s partnership with Amazon began in 2018, with Amazon holding an 8% stake before the acquisition.
India’s digital lending market is projected to grow to USD 350 billion by 2026, driven by low credit penetration and increasing smartphone adoption. Amazon’s acquisition aligns with its broader fintech investments in India, including stakes in Acko, BankBazaar, and Smallcase, reflecting a strategic focus on disrupting traditional financial models.
What’s Next
Amazon plans to deepen its integration of Axio’s credit stack into Amazon Pay, expanding BNPL options and introducing new consumer and SME loan products.
The company aims to leverage its vast customer base to double Axio’s monthly loan origination volumes without additional customer acquisition costs. As the Amazon Axio acquisition reshapes India’s fintech landscape, it signals a new era of tech-driven financial inclusion, with potential to transform credit access for millions.
Published in SouthAsianDesk, September 4th, 2025
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