Amazon announced the completion of its acquisition of digital lending platform axio (formerly Capital Float), marking one of the ecommerce giant’s largest India deals to date. The transaction, reportedly valued at $200 million, gives Amazon direct access to a fully owned NBFC and sets the stage for the next chapter in its India fintech journey. The move follows regulatory approval from the RBI and comes after six years of partnership—a period during which axio powered Amazon’s BNPL (Buy Now, Pay Later) offerings for over 10 million customers.
Why Axio Matters in India’s Lending Tech Scene
Founded in 2013 by Gaurav Hinduja and Sashank Rishyasringa, axio offers BNPL, checkout finance, and personal lending, with assets under management of INR 2,200 crore and a customer base of 10 million+. Axio will continue operating under its current leadership while becoming a subsidiary within Amazon, integrating more deeply into Amazon Pay’s credit products and leveraging the tech and reach of Amazon’s India ecosystem.
Amazon has invested steadily in axio: $22 million through the Sambhav Venture Fund in 2018, another $20 million in follow-ons, prior to this acquisition. Axio was already a leader among India’s fintechs, backed by investors like Elevation Capital, Peak XV Partners, and Lightrock. Its acquisition bolsters Amazon’s positioning as a responsible lender, able to unlock credit for new segments and small businesses.
The BNPL Wars: Competition Heats Up
With axio in its portfolio, Amazon Pay intends to scale up in the fast-growing BNPL market—expected to reach $35 billion by 2030. Amazon Pay will now have tighter integration with axio’s tech stack, helping refine credit scoring, expand instant loan offerings, and diversify payment options for both ecommerce and offline sellers. Key competitors include ZestMoney, Simpl, LazyPay, KreditBee, and Flipkart Pay Later. Importantly, Flipkart too received its NBFC licence from RBI in March 2025, paving the way for direct lending and fintech partnerships—raising the stakes across platforms.
Amazon Pay processed 68 million UPI transactions worth ₹7,419 crore in May 2024, though its UPI market share trails leaders like PhonePe and Google Pay. Amazon has pumped over ₹950 crore in Amazon Pay by the end of 2025, focusing on widening product lines, building merchant networks, and strengthening regulatory footing. The axio acquisition is expected to accelerate product rollouts, especially in checkout finance and embedded lending.
Strategic Impact and Future Outlook
The deal allows Amazon to expand lending responsibly, deepen financial inclusion, and tap new business segments as regulation opens opportunities in personal credit and SME lending. Axio’s AUM and portfolio will help Amazon Pay grow beyond payments into full-stack digital banking and lending. Amazon’s ability to offer innovative credit, fueled by NBFC capabilities, highlights a maturing fintech strategy—one that involves deeper product development, better risk management, and closer regulatory alignment.
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From expanding merchant services to tapping underserved customers, Amazon’s India fintech play is evolving quickly. Both the Amazon-Axio union and Flipkart’s NBFC debut signal a new era where top Indian ecommerce players become major forces in digital lending, transforming how millions access credit and manage spending.
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Final Thoughts
Amazon’s acquisition of axio is a landmark moment for India’s digital lending sector, creating fresh momentum in embedded finance, BNPL, and credit innovation. As competition intensifies—with Flipkart, ZestMoney, LazyPay, and others vying for the same market—the focus will be on responsible lending, technology-driven products, and deep integration with India’s digital commerce landscape.
