Fintech Startup Axio Secures 170 Cr from Amazon Smbhav VCF

SA TeamAugust 26, 2024

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Three points you will get to know in this article:

Axio will use the fresh cash to scale operations, expand checkout finance use cases, and offer new credit products.
Prior to this round, the company secured $137 million in equity and $671 million in debt financing.
Axio claims to have served more than 15 million consumers to date, with over 9 million being credit customers.

Digital Lender Axio Raises $20 Mn (Around 170 Cr)

Axio (formerly Capital Float), a Bengaluru-based digital lender, has won a fresh fundraising round of $20 million (approximately INR 167.8 crore) from Amazon Smbhav Venture Fund.

The new funding will be used to scale operations, extend checkout finance use cases, and offer new credit products, according to a company statement.

The board of axio has authorized a special resolution to issue 11,25,000 preference shares at an issue price of Rs 1,486 apiece, raising Rs 167 crore or $20 million, according to a regulatory filing obtained from the Registrar of Companies (RoC).

The rights issue will be offered to existing shareholders at the ratio of 0.51 shares for every 1 share they presently hold, according to the filing.

In a joint statement, Axio cofounders Hinduja and Rishyasringa said, “This investment will allow us to scale our loan book, improve our checkout finance offering, and expand credit offerings to existing customers. Our goal is to enable loan access for the next 200 million clients in India by combining product innovation with strong underwriting and risk management.”

What Expertise Does Axio Have?

Axio is a digital consumer finance startup founded in 2013 by Gaurav Hinduja and Sashank Rishyasringa. It provides pay later, credit, and personal finance management.

CapFloat Financial Services Private Limited, a Reserve Bank of India-registered non-banking financing company (NBFC), operates under the brand name Axio. The platform provides pay-later, personal credit, and money management services. According to its website, the platform offers loans to users ranging from INR 30K to INR 4 lakh.

The organization claims to have served over 15 million consumers to date, with over 9 million of those being credit customers. Aside from that, it has collaborated with notable brands such as ixigo, Mamaearth, upGrad, and Amazon, among others.

Was Axio Involved In Other Funding Rounds Before This?

This comes months after axio got a debt capital of $6 million (about INR 50 crore) from venture debt firm Alteria Capital.

Prior to this round, the company secured $137 million in equity and $671 million in debt financing. Its supporters include Elevation Capital, Peak XV, Lightrock India, and Amazon Smbhav Venture Fund.

Axio participates in the rapidly rising Indian fintech market, which is estimated to reach $2.1 trillion by 2030. According to experts, the loan technology sector alone is anticipated to be worth $1.3 trillion by the end of the decade.