Lightrock-backed digital lending firm Axio has raised $20 million in equity funding from the Amazon Smbhav Venture Fund.
The funds will be used to support further growth, including scaling lending operations, expanding the use cases of checkout finance, and offering more credit products to customers throughout their lifecycles, the firm said in a statement on August 23.
Bengaluru-based Axio, formerly known as Capital Float, holds an NBFC license and offers digital loans through its own books as well as in co-lending partnerships with banks and other NBFCs. It also provides a pay-later option and personal finance management services.
The company claims to have reached $1 billion in annualised disbursals, with 60 percent of its customers coming from non-metros. It has maintained a low non-performing assets (NPA) ratio of 2-3 percent.
Prior to this round, the company had raised $137 million in equity and $671 million in debt. Light Rock remains the largest external shareholder with 19.42% before this round, followed by Elevation Capital, which owned 13.84 percent, according to data from The Kredible.
Peak XV, Creation, Amazon, Ribbit, and QED Innovations are among its other backers.
"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 Co-founders Sashank Rishyasringa and Gaurav Hinduja in a joint statement.
In FY23, the firm reported a 2X growth in its revenue to Rs 220 crore compared to Rs 110 crore previously, while losses grew marginally to Rs 137 crore. It has yet to disclose numbers for FY24.
Abhijeet Muzumdar, Vice President and Head of the Amazon Smbhav Venture Fund and Corporate Development, added, "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 products to more customers while upholding responsible risk management."
In 2021, Amazon announced the $250 million Amazon Smbhav Venture Fund to invest in technology-led startups. Its other investments include startups like FreshtoHome, XYXX, Hopscotch, Fitterfly, Cashify, The Good Glamm Group, M1xchange, Smallcase, Innovist, and others.
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