Amazon strengthens its presence in India with the acquisition of Axio, a player in digital credit.

With limited access to traditional credit, India is a key opportunity for Amazon, which has invested more than $10 billion. In this context, Amazon has decided to acquire Axio, a digital credit startup founded in 2013 in Bangalore, specializing in the model 'Buy Now, Pay Later' (BNPL).

FACTS

• Amazon signed an agreement to acquire Axio, a digital credit player, formerly Capital Float.

• Axio offers:

  • Point-of-sale credits for self-employed persons and households.
  • Quick credit assessments.
  • Non-bank Financial Solutions (NBFC).

• The acquisition extends a partnership started in 2018, when Amazon acquired 8% of Axio through its Smbhav Venture Fund. In 2024, she added an investment of $20 million.

• The transaction, estimated at over $150 million, is subject to approval by the Indian Central Bank. Axio has already raised $135 million from investors such as Peak XV Partners and Ribbit Capital, serving 10 million customers, and manages a $260 million portfolio.

ISSUES

• Democratising access to credit Axio and Amazon target underserved segments through a fast and regulated platform.
• Strengthening Amazon in India By multiplying acquisitions like MX Player, Amazon is expanding its influence in a market with high potential.
• Increased competition on the BNPL : Axio must manage the challenges of the sector, including the low profitability of small loans and the risk of over-indebtedness of clients.

PERSPECTIVE

• Axio aims to seduce 200 million new customers and innovate in the user experience. Amazon, for its part, continues to diversify its supply in India, notably through financial services such as Pay With Prime.

• However, their success in the BNPL will depend on their ability to balance growth and responsible credit management, in order to avoid any reputational risk or default.

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