Amazon Acquires Bengaluru Startup Axio, Strengthens Digital Lending in India

Amazon has finalised its acquisition of Bengaluru-based fintech lender Axio, securing a direct lending license through the non-banking financial company (NBFC) to expand its financial services footprint in India. The deal, approved by the Reserve Bank of India in June, marks one of Amazon’s largest acquisitions in the country, strengthening its ability to offer innovative credit solutions to Indian consumers and small businesses.

The acquisition builds on a six-year partnership where Axio, formerly Capital Float, powered Amazon Pay’s Buy Now Pay Later services, serving over 10 million customers. “With only 1 in 6 Indian customers having access to checkout financing, growing access to credit is a fundamental priority for Amazon,” said Mahendra Nerurkar, Vice President of Payments at Amazon India. “Axio’s digital lending expertise, combined with Amazon’s reach and technology, will help us expand responsible lending to millions more customers and small businesses.”

Axio, a 12-year-old fintech firm, reported a loan book of ₹22 billion ($251.4 million) for the quarter ending June 2025. The company will operate as a wholly-owned subsidiary of Amazon India under its current leadership, focusing on digital credit and money management solutions. “Joining forces with Amazon marks an exciting new chapter for Axio,” said co-founder Gaurav Hinduja. “This union will allow us to accelerate our mission to take digital lending to the next 100 million Indians—responsibly and at scale.”

The move positions Amazon to compete more effectively in India’s booming fintech market, projected to reach $150 billion by 2025. With Axio’s NBFC license, Amazon can now offer direct loans, including checkout financing and new credit products, without relying on third-party lenders. This follows rival Flipkart's acquisition of an NBFC license through Flipkart Finance in April 2025. Amazon Pay, already the ninth-largest player by volume on India’s Unified Payments Interface in July 2025, aims to deepen its fintech presence by integrating Axio’s expertise with its payment wallets and insurance offerings.