Axio Raises $20 Mn from Amazon Smbhav Venture Fund
Online lending platform Axio (formerly Capital Float) has successfully raised $20 million from the Amazon Smbhav Venture Fund. The company plans to use the funds to support further growth, including scaling lending operations, expanding the use cases of checkout finance, and offering more credit products to its customers.
According to a press release, Axio has achieved $1 billion in annualized disbursals and maintains a low non-performing assets (NPA) ratio of 2-3%. Before this funding round, the Bengaluru-based company had raised $137 million in equity and $671 million in debt.
Original story follows:
Axio has raised Rs 167 crore (approximately $20 million) from existing investors through a rights issue. The board has approved the issuance of 11,25,000 preference shares at an issue price of Rs 1,486 each. This rights issue will be available to existing shareholders at a ratio of 0.51 shares for every 1 share they currently hold, according to a regulatory filing accessed from the Registrar of Companies (RoC).
While the firm did not disclose the names of the investors, Amazon is expected to have made a significant contribution. Amazon had previously invested in Axio's Rs 144 crore extended Series C round in 2018 and owned around 8% of the company before this latest round.
The data intelligence platform TheKredible reports that Light Rock was the largest external shareholder with 19.42% before this round, followed by Elevation with 13.84%. Other backers include Peak XV, Creation, Amazon, Ribbit, and QED Innovations.
Axio co-founder Sashank Rishyasringa stated that the company saw a 50% increase in revenue and a 95% reduction in losses in the last fiscal year (FY24). Although the exact FY24 numbers are yet to be disclosed, Axio reported a twofold growth in revenue to Rs 220 crore in FY23 compared to Rs 110 crore in FY22. The company’s losses marginally increased to Rs 137 crore in the fiscal year ending March 2023.
Update: The headline and story have been updated to include additional details from Axio’s press release.
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