The new funds will be used to drive growth, scale lending operations, expand use cases for checkout finance, and introduce more credit products to customers throughout their financial lifecycles, it said in a statement on Friday.
This funding comes as equity deals gain momentum in the digital lending sector focused on micro, small, and medium enterprises (MSMEs).
On August 14, ET reported that Flexiloans is in talks with a bunch of global and domestic investors to raise around $35 million in fresh funding. Similarly, Indifi Technologies, another MSME lender, secured around $35 million last year.
Bengaluru-based Axio, formerly Capital Float, operates with a non-banking finance company (NBFC) license, offering loans through its own books and via co-lending partnerships with banks and other NBFCs.
Axio claims to have reached around 10 million credit customers, with a billion-dollar annualised disbursal.
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Prior to this round, Axio had raised $137 million in equity and $671 million in debt.In 2021, the company secured $50 million in equity funding led by Lightrock India, alongwith other existing and new investors, achieving a post-money valuation of $201 million, according to Tracxn.
The company has also received investments from investors like Peak XV, Elevation Capital, and Ribbit Capital.
“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, we aim to unlock access to credit for the next 200 million customers across India,” Sashank Rishyasringa and Gaurav Hinduja, cofounders of Axio, said in a joint statement.
Ecommerce major Amazon launched the $250 million Smbhav Venture Fund in 2021, initially focusing on agriculture and healthcare sectors. The fund has since expanded to include direct-to-consumer (D2C) brands and sectors such as fintech and gaming. Its portfolio includes brands like Acko, Cashify, Fitterfly, and M1xchange.
“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,” said Abhijeet Muzumdar, vice president and head of Amazon Smbhav Venture Fund and Corporate Development.