Digital consumer finance firm Axio on Friday raised $20 million in equity funding from the Amazon Smbhav Venture Fund as the startup looks to scale lending operations, expand use cases of checkout finance, and offer more credit products to customers.
With the latest round, the company has raised $232 million in total funding to date, according to data from market intelligence platform Tracxn.
Prior to this round of investment, the company had raised $137 million in equity and $671 million in debt.
In 2021, the company raised $50 million in equity funding led by Lightrock India with participation from other existing and new investors.
The Bengaluru-based company previously raised funding from investors like Peak XV (formerly Sequoia India), Elevation Capital (formerly SAIF Partners), Ribbit Capital, and the Amazon Smbhav Venture Fund.
“This investment will enable us to further scale our loan book, enhance our checkout finance offering, and expand credit offerings to existing customers. By combining product innovation with robust underwriting and risk controls, our aim is to unlock access to credit for the next 200 million customers across India,” said company co-founders Sashank Rishyasringa and Gaurav Hinduja, in a joint statement.
The firm has 10 million credit customers and clocks $1 billion in annualised disbursals.
It claims to have maintained a low non-performing assets (NPA) ratio of 2–3 per cent.
“This investment and our long-term relationship reflect our belief in Axio’s ability to provide credit products and will enable them to expand innovative financial services to more customers while upholding responsible risk management,” said Abhijeet Muzumdar, Vice President & Head, Amazon Smbhav Venture Fund and Corporate Development.
In 2021, the e-commerce giant announced the launch of the $250 million Amazon Smbhav Venture Fund to invest in technology-led start-ups.
The fund has made investments across sectors and has backed companies including M1xchange, Smallcase, Innovist, among others.
First Published: Aug 23 2024 | 5:51 PM IST
