Amazon Expands In India With $150 Million Acquisition of Axio
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Amazon has decided to acquire Axio, an India-based buy now, pay later company, in a deal that is said to be worth over $150 million. Axio was created by merging three companies: Capital Float, Walnut, and Walnut369. It helps online stores add credit options and money tools for customers when they check out.
The company has worked with over 10 million customers and 3,000 businesses, helping Amazon in India by offering shoppers the chance to pay in parts over 3 to 12 months.
Axio Aims To Reach More Customers And Offer More Services
Amazon has worked with Axio for the past six years, and just last year, it invested $20 million in the company through its Smbhav Venture Fund.
In December, after performing a careful analysis, Amazon and Axio signed an agreement for Amazon to take over Axio. The deal is waiting for approval from the authorities.
In a blog post, Axio stated that this will help the firm reach more people who don’t have good access to financial services. The company will also be able to offer more services to meet the needs of its customers. The firm added that the team will keep working to provide the best experience for customers while managing risk and making sure its services are affordable.
The startup focuses on giving credit to people who are self-employed and to families who purchase items on major online shopping sites, like MakeMyTrip and Amazon. It claims to have more than 10 million customers and a total loan amount of more than $260 million.
Axio Uses A Fast System To Check Loan Repayment Ability
Axio and other similar companies in India, run businesses in a market where it is hard for people to get traditional credit. Many people don’t have credit cards, and regular banks usually don’t want to give small loans because they find them unprofitable. Axio tries to fix this problem by using its system that quickly checks if someone can pay back a loan. It makes decisions about credit in just two clicks and five seconds.
But like many other small companies, Axio has had trouble keeping up its growth. A similar company, ZestMoney, was once worth $450 million, but it struggled and was purchased by DMI Group last year. Axio competes with Bajaj Finance, a top financial company in India that controls most of the market.
Axio is the second Indian company Amazon has secured in the past year. In June, according to reports, Amazon also acquired MX Player, a video streaming service. So far, the tech giant has spent over $10 billion in India.
