August 23, 2024: axio, announced that it has raised $20 million in equity funding from Amazon Smbhav Venture Fund. The funds will be used to support further growth, including scaling lending operations, expanding use cases of checkout finance, and offering more credit products to customers over their lifecycles.
A Reserve Bank of India-registered Non-Banking Finance Company, axio has also built strategic co-lending partnerships with leading banks and NBFCs to finance the needs and aspirations of its customers. Over 60% of axio's customers reside in non-metros, highlighting the company's reach.
The company has experienced rapid growth in recent years, reaching nearly 10 million credit customers and $1 billion of annualized disbursals. From FY22 to FY24, axio demonstrated strong growth with a 2.5x increase in customers, a 3.5x rise in disbursals, and a 5x growth in assets under management. The company has maintained a low Non-Performing Assets ratio (NPA) of 2-3%, reflecting sound risk management.
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. axio has previously raised funding from investors like Peak XV (formerly Sequoia India), Elevation Capital (formerly SAIF Partners), Ribbit Capital, and Amazon Smbhav Venture Fund.
Co-founders Sashank Rishyasringa and Gaurav Hinduja said in a joint statement, “We are excited to have Amazon Smbhav Venture Fund - a long-standing investor - continue to support axio for its next phase. This investment will enable us to further scale our loan book, enhance our checkout finance offering, and expand credit offerings to existing customers. By combining product innovation with robust underwriting and risk controls, our aim is to unlock access to credit for the next 200 million customers across India. We are grateful to have the trust and confidence of our investors in this mission, to build out a world-class digital financial institution for India.”
Abhijeet Muzumdar, Vice President & Head Amazon Smbhav Venture Fund and Corporate Development, said, "We are excited to support axio in their mission to provide accessible and responsible digital credit solutions in India. This investment and our long-term relationship reflect our belief in axio's ability to provide credit products and will enable them to expand innovative financial services products to more customers while upholding responsible risk management.”
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