Bengaluru: Amazon has completed the acquisition of Bengaluru-based non-banking financial company (NBFC) Axio, securing a direct entry into India’s lending business.
The Reserve Bank of India approved the deal in June, according to Mahendra Nerurkar, Amazon’s vice president for payments in emerging markets. The acquisition process has been underway since December.
Founded 12 years ago, Axio provides digital credit and money management solutions to both retail consumers and small businesses. It has been working with Amazon since 2018 to power credit and pay-later offerings. With this acquisition, Amazon will now operate with its own NBFC license, allowing it to lend directly—an approach considered more lucrative than partnerships.
Nerurkar said Axio would enable Amazon to roll out a wider range of credit products, including loans at checkout and offerings “beyond Amazon,” though he did not disclose specific plans. Unlike most e-commerce rivals that depend on banking partners, Amazon’s move will allow it to control its lending portfolio and build deeper engagement with customers.
Flipkart, Amazon’s key competitor, received its NBFC license in April through its unit Flipkart Finance, enabling it to lend directly but not take deposits.
Axio will continue operating as a separate entity but will now function as a wholly-owned Amazon subsidiary.
Also Read
Career247 Launches First School of Banking in Pune, Partners with Axis Bank
Discussion about this post