Amazon said it has received the approval from The Reserve Bank of India (RBI) for its acquisition of digital lending and checkout finance provider Axio.

"One of Amazon's largest acquisitions in India, the deal brings together Amazon's reach with Axio's digital lending expertise to expand credit access across India," said Amazon in a statement.

Amazon had first invested in Axio (formerly Capital Float) in 2018, injecting $22 million at about $350 million valuation. In 2020, it followed up with an equity infusion of about $5 million. In August last year, The Head and Tale reported that Amazon was investing $20 million in Axio.

Later in December, Amazon signed an agreement to acquire Axio. The deal, which will give access to a non-banking financial company (NBFC) license to Amazon, was valued at $150 million.

Axio, which was founded in 2013 by Gaurav Hinduja and Sashank Rishyasringa, initially focused on providing loans to small and medium-sized enterprises (SMEs). However, it shifted its strategy to consumer lending during the Covid-19 pandemic, with a significant focus on buy now, pay later (BNPL) segment.

Mahendra Nerurkar, vice president, payments at Amazon India said in the statement that  over the past six years it partnership with Axio has enabled the tech giant to unlock credit for more than 10 million customers.  

"Axio's digital lending expertise combined with Amazon's reach, technology know-how and bank relationships would help us expand responsible lending to millions more customers and small businesses in coming years," added Nerurkar.

The statement explained that the acquisition reinforces Amazon's commitment to India's digital future, with a focus on expanding credit access to underserved segments.