Amazon Completes Axio Acquisition, Enters Digital Lending in India

Why in the News?

Amazon has completed the acquisition of Bengaluru-based digital lender Axio, a development that has stirred interest in India’s financial and e-commerce sectors.

The all-cash deal, estimated at around 150 to 200 million dollars, has been one of Amazon’s largest strategic moves in the country.

The Reserve Bank of India approved the deal in June 2025, giving Amazon a direct lending license through Axio’s non-banking financial company (NBFC) status. With this, Amazon has secured the ability to issue loans on its own rather than relying on third-party partnerships, a shift that puts it in a stronger position to control and expand its lending operations.

About Axio

Axio, formerly known as Capital Float, is a fintech company with a twelve-year history, focusing on digital credit solutions for consumers and small businesses.

The company offers personal loans, Buy Now Pay Later (BNPL) services, and other flexible credit options. Since 2018, Axio has been the key partner behind Amazon Pay’s BNPL offerings, enabling customers to access credit at checkout. Together, they have already served more than ten million customers.

Axio has also built strong financial credentials. As of mid-2025, the company managed a loan book of about 2,200 crore rupees, or roughly twenty-two billion rupees. Over its lifetime, it has disbursed more than 35,000 crore rupees in loans. Importantly, it has kept defaults relatively low, with non-performing assets currently at about 1.8 percent, according to the founders’ latest statement.

Why It Matters?

The acquisition is significant because Amazon can now offer direct lending to its customers. Earlier, it had to rely on banks or other financial institutions to provide loans through Amazon Pay.

With Axio’s NBFC license, Amazon can design its own credit products, manage risks in-house, and keep a larger share of the profits. This gives the company far more control over how lending works on its platform.

It also makes Amazon Pay much stronger. Until now, Amazon has been primarily focused on payments, wallets, and small insurance products. By incorporating credit and lending into its ecosystem, Amazon can offer customers a comprehensive financial experience.

Another big factor is financial inclusion. In India, only a small part of the population has access to loans at checkout or for daily purchases. Amazon’s wide customer base and Axio’s lending technology together can expand access to affordable credit for millions of people.

This will help not only urban shoppers but also customers in smaller towns, as well as small businesses that often struggle to get loans from traditional banks.