Digital consumer finance firm Axio on Friday raised $20 million in equity funding from Amazon Smbhav Venture Fund as the startup looks to scale lending operations, expand cash-based financing use cases 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 has previously raised funding from investors including Peak XV (formerly Sequoia India), Elevation Capital (formerly SAIF Partners), Ribbit Capital and Amazon Smbhav Venture Fund.
“This 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,” the company’s co-founders Sashank Rishyasringa and Gaurav Hinduja said in a joint statement.
The firm has 10 million credit clients and records $1 billion in annual disbursements.
It claims to have maintained a low non-performing asset (NPA) ratio of 2-3 per cent.
“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.
In 2021, the e-commerce giant announced the launch of the $250 million Amazon Smbhav Venture Fund to invest in technology-led startups.
The fund has invested across all sectors and has backed companies such as M1xchange, Smallcase, Innovist, among others.
First published: August 23, 2024 | 17:51 IS
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