On Friday, Axio raised $20 million in equity funding from Amazon Smbhav Venture Fund as the digital consumer finance startup aims to expand lending and offer more credit products.
Axio has raised $232 million in total funding with the latest round, according to data from Tracxn, a market intelligence platform.
Prior to the latest funding, 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 investors.
Bengaluru-based Axio previously raised funds from Peak XV (formerly Sequoia India), Elevation Capital (formerly SAIF Partners), Ribbit Capital and Amazon Smbhav Venture Fund.
“This (latest) investment will enable us to further expand our loan portfolio, enhance our cash financing offering and expand credit offering to existing customers. By combining product innovation with robust underwriting and risk controls, we aim to unlock access to credit for the next 200 million customers across India,” Axio co-founders Sashank Rishyasringa and Gaurav Hinduja said in a joint statement.
The startup has 10 million credit customers and $1 billion in annual disbursements. It claims to have a non-performing asset (NPA) ratio of 2-3 percent.
“This investment and our long-term relationship reflect our belief in Axio’s ability to provide lending products and will enable them to expand innovative financial services to more customers while maintaining responsible risk management,” said Abhijeet Muzumdar, Vice President and Head of Amazon Smbhav Venture Fund and Corporate Development.
The e-commerce giant launched the $250 million Amazon Smbhav Venture Fund for investments in technology startups. The fund has made investments across a range of sectors and has backed companies such as M1xchange, Smallcase and Innovist.
First published: August 23, 2024 | 17:51 IS
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