Amazon signals major BNPL expansion with Axio acquisition

Man typing on laptop with shopping icons and BNPL on screen.
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Indian fintech axio has announced that it will be acquired by e-commerce giant Amazon, following an agreement signed last December.

The BNPL firm stated that Amazon’s involvement will drive its expansion throughout India. This will allow the company to reach underserved communities, introduce a wider range of solutions and focus on responsibly increasing access to credit while balancing customer satisfaction, risk management and affordability.

The planned acquisition seeks to build on a six-year collaboration between the two companies, beginning with Amazon’s initial investment in axio during its Series C funding round six years ago. Amazon currently holds an 8% stake in the firm.

In a statement, axio shared: “We have achieved steady growth with robust asset quality, having served over 10 million customers till-date with an AuM of Rs. 2,200 crores and a 3% GNPA. Amazon has been an invaluable partner in this journey, and we have more to accomplish together.”

Although the agreement with Amazon was signed in December, after successful due diligence, the acquisition is still pending necessary regulatory approvals.

axio concluded: “We’re energised by what lies ahead and the opportunities to create meaningful change. For now, it’s back to business, as we remain committed to our mission and the partners and customers we serve.”

The use of BNPL services has surged globally in recent years, driven by consumer demand for flexible payment options during recent times of economic strife impacting consumers’ money management. 

This growth has even prompted major financial institutions to enter the market, with HSBC launching its HSBC Flexipay platform last year. The bank partnered with green energy company OVO, enabling customers to finance products like solar panels and batteries.