💰 Acquisition Details
Amazon is acquiring Axio, an online lending platform, for $150-175 million. This deal is Amazon's second major step into India's fintech sector, after acquiring Emvantage. The acquisition terms have been finalized, and Amazon is doing due diligence. Amazon currently holds an 8% stake in Axio, which it bought during Axio’s Rs 144 crore Series C round in 2018.
🔍 Strategic Importance
Amazon plans to use Axio to enhance its buy now pay later (BNPL) service for Amazon Pay, strengthening its financial services in India. Over 80% of Axio's volume comes from Amazon, and Amazon's BNPL is mostly powered by Axio. This acquisition benefits both companies as they heavily rely on each other.
📈 Axio's Growth
Axio, based in Bengaluru, has provided credit to 9 million customers. Its partners include Decathlon and Xiaomi. Axio acquired the financial management app Walnut for about $30 million in 2018. Axio's revenue doubled to Rs 220 crore in FY23 from Rs 110 crore in FY22, though losses slightly increased to Rs 137 crore. Axio's FY24 numbers are yet to be disclosed.
🌐 Amazon's Expanding Ecosystem
This acquisition follows Amazon's purchase of MX Player's assets in May, aiming to enhance its Mini TV service in India. Amazon's continued investments in India highlight its commitment to expanding its digital ecosystem in the country. "The acquisition makes absolute sense for both companies as they are over-dependent on each other," said a source.
Will Amazon's move strengthen its fintech presence in India?
