Amazon Acquires Axio: RBI Clears E-Commerce Giant’s Entry Into Indian Lending

Amazon has completed its $200 million acquisition of Axio, formerly known as Capital Float, after receiving approval from the Reserve Bank of India (RBI). The deal marks one of Amazon’s largest investments in India and significantly deepens its push into digital lending services in the country.

With this acquisition, Amazon will fully integrate Axio’s lending expertise into its financial ecosystem, strengthening Amazon Pay Later’s checkout finance and term loan capabilities. The move is expected to create new opportunities for innovation in digital credit solutions, especially for underserved customers and small businesses across India.

Expanding Amazon’s Fintech Footprint in India

Amazon has been working with Axio for the past six years, powering its Buy Now, Pay Later (BNPL) service for over 10 million customers. By taking full ownership, Amazon plans to expand its offerings to include merchant lending while competing more aggressively with local fintech rivals.

Although the company did not officially disclose financial details, sources familiar with the deal confirmed its valuation at approximately $200 million. As part of the acquisition, all existing investors in Axio have exited, while the company’s founders, Sashank Rishyasringa and Gaurav Hinduja, will continue to lead operations under Amazon’s ownership.

Amazon’s Vision for Financial Inclusion

“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, VP of Payments at Amazon. “Axio’s expertise, combined with Amazon’s technology and reach, will allow us to expand responsible lending to millions more customers and small businesses in the years ahead.”

Axio currently has ₹2,200 crore in assets under management (AUM) and will operate as a subsidiary of Amazon. Its co-founders emphasized that the partnership will accelerate their mission to bring digital credit access to 100 million Indians, leveraging Amazon’s customer base, financial depth, and India’s digital infrastructure such as UPI and eKYC.

Why This Matters

This acquisition strengthens Amazon’s position in India’s fast-growing digital lending market, valued at billions of dollars, while also reinforcing its financial services arm, Amazon Pay. The deal positions Amazon to compete more effectively with fintech giants like Paytm, PhonePe, and Bajaj Finserv, who are also aggressively expanding in the lending segment.