SUMMARY
- Axio has successfully secured a funding of approximately Rs 167 crore from Amazon Smbhav Venture Fund.
- Axio Board of Directors has passed a special resolution to issue 11,25,000 preference shares at a price of Rs 1,486 each to raise the sum.
- Notably, Amazon has been an investor in Axio, participating in the firm’s extended Series C funding round in 2018.
Axio (formerly known as Capital Float), a Bengaluru-based online lending platform, has successfully secured a funding of approximately Rs 167 crore (around $20 million) from Amazon Smbhav Venture Fund.
This investment will be allocated towards further expansion, including the growth of lending activities, the broadening of applications for checkout financing, and the introduction of additional credit offerings to its clientele, Axio announced in a statement.
Axio asserts that it has crossed the $1 billion mark in annual loan disbursements and has kept its non-performing assets (NPA) ratio at 2-3%, according to the statement. Prior to this investment, the company had secured $137 million in equity and $671 million in loans, as detailed in its statement.
Filings accessed through the Registrar of Companies (RoC) state that the Axio Board of Directors has passed a special resolution to issue 11,25,000 preference shares at a price of Rs 1,486 each to raise the sum.
The rights issue are set to be offered to the existing shareholders at a ratio of 0.51 shares for every share they presently own.
Although the names of the investors have not been disclosed, it is highly probable that Amazon has contributed significantly to this funding round. Furthermore, there were reports in July of Amazon being in discussions for a complete acquisition of Axio.
Notably, Amazon has been an investor in Axio, participating in the firm’s extended Series C funding round in 2018. Prior to this latest funding, Amazon owned approximately 8% of the lending platform.
Light Rock emerged as the largest external shareholder with a 19.42% stake prior to this round, followed by Elevation with a 13.84% stake. Other significant investors include Peak XV, Creation, Amazon, Ribbit, and QED Innovations as per TheKredible.
In a recent press statement, Sashank Rishyasringa, one of Axio’s co-founders, highlighted a significant increase in the firm’s revenue, noting a 50% growth in the last fiscal year (FY24) and a 95% reduction in losses.
While the exact figures for FY24 have not been disclosed by Axio, the company has reported a 2X growth in revenue to Rs 220 crore in FY23, a significant increase from the revenue of Rs 110 crore in FY22. The Bengaluru-based firm experienced a marginal increase in losses to Rs 137 crore in FY22.
