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Digital consumer finance company Axio has raised $20 million in equity funding from Amazon Smbhav Venture Fund.
The funds will be used to scale lending operations, expand use cases of checkout finance, and offer more credit products to customers over their lifecycles.
Amazon-backed Axio is the brand name of CapFloat Financial Services Private Limited - a non-banking finance company (NBFC) registered with the Reserve Bank of India (RBI). The platform offers pay later, personal credit and money management services.
The company claimed to have nearly 10 million credit customers and $1 billion of annualized disbursals. From FY22 to FY24, Axio saw its customer base increase by 2.5x, disbursals by 3.5x and a 5x growth in assets under management. The company has maintained a low Non-Performing Assets ratio (NPA) of 2-3%, it added in its statement. Over 60% of Axio’s customers reside in non-metro cities.
Founded in 2013 by Gaurav Hinduja and Sashank Rishyasringa, the company had raised $137 million in equity and $671 million in debt. In 2021, the company raised $50 million in equity funding led by Lightrock India with participation from other existing and new investors. Axio has previously raised funding from investors like Peak XV (formerly Sequoia India), Elevation Capital (formerly SAIF Partners), Ribbit Capital, and Amazon Smbhav Venture Fund.
E-commerce major Amazon invested $18.5 million in the company in 2018 and another $4.9 million in 2020. It owns around 8 per cent stake in the company.
Co-founders Rishyasringa and Hinduja said in a joint statement, “This investment will enable us to further scale our loan book, enhance our checkout finance offering, and expand credit offerings to existing customers. By combining product innovation with robust underwriting and risk controls, our aim is to unlock access to credit for the next 200 million customers across India. We are grateful to have the trust and confidence of our investors in this mission, to build out a world-class digital financial institution for India.”
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