Axio is a digital lending platform that has secured 20 million USD in its series F funding round led by Amazon Smbhav Venture Fund. The company raised the funds from existing investors through the right issue. The existing shareholders will be offered the right issues at a ratio of 0.51 shares for every share they hold. The startup plans to use this fresh capital to scale its operations, expand use cases for checkout finance, enhance its platform, and expand its offerings across the country.
The board has approved a special resolution to allot 11,25,000 preference shares at an issue price of Rs 1,486 per share to raise 20 million USD. According to the company filing, the startup will use these fresh proceeds for working capital and market expansion. The company offers various financial solutions such as credit, and buy now pay later options. The platform also provides point-of-sale financing and personalized management tools to enable businesses to manage sales. The startup provides a financial services platform that uses various technologies to offer its customers financial advisory, transaction capabilities, and access to wealth management tools. This investment shows the trust of Amazon Smbhav Venture Fund in Axio’s market potential and business model.
The startup operates with a Non-banking Finance Company license and offers loans through lending partners with the help of banking and financial partners. The firm claims to have provided billion-dollar annual loans to more than 10 million credit customers through its online lending platform. After this round, the existing investor Light Rock holds the largest external stake with 19.42 percent followed by Elevation with 13.84 percent. The company also receives investment from known investors including Amazon, Peak XV, QED Innovations, and Ribbit. The startup faces competition from other digital lending platforms like MobiKwok, Simpl, and Ezetap.
The fintech startup reported a 50 percent increase in its revenue in FY24 while the losses also reduced by 95 percent in the same duration. The company saw a two-times growth in its revenue to Rs 220 crore in FY23. However, the losses grew to Rs 137 crore in the same period. Before, this funding round Amazon had 8 percent stock in the company. Before this round, Axio raised $671 million in debt and $137 million in equity. Auxio offers a platform that provides personal finance management tools.
Conclusion:
Auxio is a fintech startup based in Bengaluru that secured $20 million in its series F funding round from the participation of Amazon Smbhav Venture Fund. The company intends to use this fresh capital to enhance its platform, scale its lending operations, and expand use cases. The digital platform provides finance management tools to help businesses to onboard customers. The company aims to develop real-time transactions and loan services. The startup offers its services through the help of financial and banking partners. The development came just after the Indian fintech sector saw increased investor interest. The fintech startup competes with other companies in the same segment including MobKwik and more.
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