Amazon Acquires a Startup for $150 Million: What Does the Company Do?

Amazon has signed an agreement to acquire the Indian startup Axio, which operates in the "buy now, pay later" lending sector. Based in Bangalore, Axio has raised $135 million from major investors such as Peak XV Partners, Ribbit Capital, and Elevation Capital since its inception.

What Problems Does Axio Solve?
Axio provides loans to self-employed individuals and households at points of sale on e-commerce platforms, including Amazon and MakeMyTrip. The company has over 10 million customers, and its loan portfolio exceeds $260 million. Axio aims to address the issue of limited access to traditional credit in India, where credit card usage remains low. The platform allows users to quickly assess their creditworthiness, approving applications in "two clicks and five seconds."

Who Are the Competitors?
Axio competes with major players like Bajaj Finance, a leader in India’s financial services market. However, like other startups in this sector, Axio has faced growth challenges. For example, a similar project, ZestMoney, had to sell its assets to DMI Group after encountering financial difficulties.

Investments and Portfolio
Axio is the second Indian startup acquired by Amazon in the past year. Earlier, in June 2024, the company acquired the video service MX Player. Overall, Amazon has invested more than $10 billion in developing its business in India, underscoring the strategic importance of this market for the company. Follow “Zamin” news on “Telegram”