Fintech lending startup Axio has secured $20 million in equity funding from the Amazon Smbhav Venture Fund. This new capital is intended to fuel the company’s growth, scale its lending operations, expand the use cases for checkout finance, and introduce a broader range of credit products to support customers throughout their financial journeys.
This investment comes at a time when equity deals are gaining traction in the digital lending sector, particularly among micro, small, and medium enterprises (MSMEs). Axio, formerly known as Capital Float, operates with a non-banking finance company (NBFC) license, offering loans through its own resources and via co-lending partnerships with banks and other NBFCs. The Bengaluru-based company has reached approximately 10 million credit customers, with an annualized disbursal rate of $1 billion.
Prior to this funding round, Axio had raised $137 million in equity and $671 million in debt. In 2021, the company secured $50 million in equity funding led by Lightrock India, reaching a post-money valuation of $201 million. The company’s investors also include Peak XV, Elevation Capital, and Ribbit Capital.
Axio’s co-founders, Sashank Rishyasringa and Gaurav Hinduja, stated that this investment will help the company scale its loan book, enhance its checkout finance offerings, and expand credit products for existing customers. The company aims to unlock credit access for an additional 200 million customers across India by combining product innovation with strong underwriting and risk controls.
The Amazon Smbhav Venture Fund, launched in 2021 with a $250 million corpus, initially focused on agriculture and healthcare sectors but has since expanded to include direct-to-consumer (D2C) brands, fintech, and gaming sectors. Its portfolio includes brands like Acko, Cashify, Fitterfly, and M1xchange. Amazon’s vice president, Abhijeet Muzumdar, expressed confidence in Axio’s ability to provide accessible and responsible digital credit solutions in India, noting that the investment aligns with their long-term commitment to supporting innovative financial services while maintaining robust risk management.