Amazon has agreed to amass Indian buy-now, pay-later startup Axio, deepening its push into monetary providers in considered one of its fastest-growing markets.
The e-commerce group, which has held an fairness stake in Axio for six years, signed the acquisition settlement in December after finishing due diligence, the Indian startup said in a weblog put up.
Monetary phrases of the deal weren’t disclosed, however two individuals acquainted with the matter advised TechCrunch that the dimensions of the deal is over $150 million. The transaction requires approval from the Indian central financial institution.
The Bengaluru-headquartered startup, previously often called Capital Float, has to date raised $135 million from traders together with Peak XV Companions, Ribbit Capital, and Elevation Capital through the years.
Axio focuses on offering credit score to self-employed people and households on the level of sale on main e-commerce platforms, together with Amazon and MakeMyTrip. It claims it serves greater than 10 million prospects and that its mortgage e-book is price greater than $260 million.
Axio and different startups prefer it in India function in a market the place entry to conventional credit score stays restricted — the nation has low bank card penetration, and standard banks typically discover small-ticket loans unprofitable.
The startup says it makes an attempt to deal with this hole with its regulated lending platform that may assess prospects’ credit-worthiness quickly, serving to it make credit score choices “inside two clicks and 5 seconds.”
However like many different startups within the class, Axio has additionally struggled to take care of its development. Goldman Sachs-backed ZestMoney, which operated in the same house and was as soon as valued at $450 million, additionally struggled and was eventually bought by financial services firm DMI Group in a fire sale final yr.
The startup competes with Bajaj Finance, the Indian monetary providers big that dominates the market.
Axio is the second startup Amazon has acquired in India previously yr — it bought on-demand video streaming service MX Participant in June. The tech big has deployed greater than $10 billion within the nation to date.
