Amazon buys Axio: new move in the BNPL business

Amazon has reached an agreement that will lead to its acquisition of Axio, the Indian startup specializing in the Buy Now Pay Later (BNPL) segment.

This has been confirmed by the target company itself. Axio has been part-owned by Amazon for six years, and in December 2024, it effectively sold its equity to the U.S. company for an undisclosed amount. However, according to sources familiar with the deal, the agreement is valued at around 150 million dollars. To be formalized, it requires approval from the Indian Central Bank.

It’s worth noting that Axio is one of the most well-known names in the BNPL industry globally. Previously, it raised 135 million dollars from investors such as:

• Peak XV Partners
• Ribbit Capital
• Elevation Capital

The company provides small-amount credit solutions to self-employed workers and families, and already operates on platforms such as Amazon. Its customer base exceeds 10 million people. The loan portfolio amounts to 260 million dollars.

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Axio: all opportunities for Amazon

Axio (formerly Capital Float) is one of India’s leading startups in the Buy Now Pay Later (BNPL) sector. The company offers digital credit solutions to both consumers and small to medium-sized businesses in India.

Regarding opportunities for investors in the Indian BNPL sector, there are several interesting factors that Amazon has assessed:

• The Indian market has tremendous growth potential. The young population is increasingly digitalized but still largely underserved by the traditional banking system.
• Credit card penetration in India is still very low (around 3-4%), creating a significant space for alternative BNPL solutions.
• The growth of e-commerce in India is generating strong demand for flexible payment solutions.

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