Amazon buys Axio, broadening its financial services reach in India

Amazon Acquires Fintech Company Axio for $200 Million

In a significant move to expand its financial services, American tech giant Amazon has acquired the fintech company Axio for approximately $200 million. This acquisition, one of Amazon's largest deals in India, marks a significant step in Amazon's mission to increase financial inclusion in the country.

Founded 12 years ago, Axio has built its portfolio around digital credit and money management offerings. The company has served roughly 10 million customers to date, and it previously facilitated buy now, pay later services for Amazon Pay. With this acquisition, Axio will now be a fully owned subsidiary of Amazon.

The primary objective of the acquisition is to enhance the reach of Amazon Pay, particularly in India. Amazon Pay was the ninth-largest service by volume on India's Unified Payments Interface. The acquisition should help the company expand Amazon Pay Later, its buy now, pay later service.

The acquisition of Axio is not Amazon's only foray into the financial sector. Reports suggest that both Amazon and Walmart, another leading retailer, have considered launching brand-specific stablecoins. A stablecoin could enable instant and transparent payments for these companies, potentially saving billions in transaction fees. However, there has been no confirmation of these plans.

Walmart, too, has been active in the fintech space. The company became a majority owner of fintech One, which it later rebranded as OnePay. OnePay has been instrumental in Walmart's new buy now, pay later (BNPL) and credit card offerings. The acquisition of Axio by Amazon could signal a larger role for OnePay in Walmart's financial services strategy.

Expanding their financial services scope is clearly in play for many of the world's leading retailers. Growing access to credit is a fundamental priority for Amazon, particularly in India, where only 1 in 6 consumers has access to financing at checkout, according to Mahendra Nerurkar, Vice President of Payments at Amazon. If Walmart and Amazon were to launch stablecoins, it could divert billions of dollars from the traditional financial system.

Mahendra Nerurkar is currently employed as Vice President, Payments Emerging Markets at Amazon, where he is involved in expanding Amazon's fintech and digital lending services in India, particularly through the acquisition and integration of the non-banking financial company Axio as a subsidiary. The acquisition of Axio is a strategic move that could propel Amazon to the forefront of the financial services sector in India.

In conclusion, the acquisition of Axio by Amazon is a significant step in the tech giant's mission to expand its financial services in India. The acquisition should help Amazon Pay Later, its buy now, pay later service, reach more customers and potentially pave the way for future ventures into the financial sector.