Amazon has finalized its acquisition of Axio, a Bengaluru-based digital lending firm, securing a direct lending license in India. The e-commerce giant received the green light from the Reserve Bank of India (RBI) in June 2025, paving the way for the completion of the acquisition. While the financial details of the deal remain undisclosed, previous reports estimated the transaction to be over $150 million.
With the acquisition of Axio, formerly known as Capital Float, Amazon can now directly lend to its customers and small businesses in India, eliminating the need for intermediaries. Axio, which already powers Amazon's pay-later and credit services since 2018, operates as a non-banking finance company (NBFC) with a loan book of $251 million as of June 2025.
This move provides Amazon with a competitive edge over its rivals, including Flipkart, which still relies on partnerships or separate lending arms for its financial services. As a wholly-owned but independently operated unit, Axio will enable Amazon to introduce new buy-now-pay-later (BNPL) features and expand its financial services beyond its core marketplace.
The acquisition aligns with Amazon's strategy to strengthen its financial service offerings in India and tap into the country's rapidly growing digital lending market. The digital lending market in India is projected to exceed $350 billion by 2026, making it a key area of focus for fintech firms and tech giants.
Axio, founded in 2013, has served over 10 million customers and has been instrumental in democratizing access to credit for self-employed individuals and those in low-income sectors. The company has an asset under management (AUM) of Rs. 2,200 crores and a gross non-performing asset (GNPA) ratio of 3%.
Amazon's acquisition of Axio marks its second purchase in India within a year, following its acquisition of video streaming service MX Player in June 2024. Amazon had initially invested in Axio in 2018. The partnership with Amazon has been a major driver of Axio's revenue, with a significant portion coming through the e-commerce platform.
The acquisition will enable Axio to further expand its digital lending solutions and cater to the increasing credit needs of millions of unbanked and underbanked individuals in India. With Amazon's support, Axio aims to accelerate its mission of providing affordable, accessible, and responsible credit solutions to a broader customer base across the country.
Amazon's move to acquire Axio signals a long-term strategy to disrupt traditional lending models and offer a more inclusive financial ecosystem. By integrating Axio into its operations, Amazon is moving closer to becoming an all-in-one platform for shopping and finance, aiming to build deeper loyalty and capture a larger share of India's vast payments and credit market.
