Axio Raises Rs 167 Crore from Existing Investors Via Right Issue

Bengaluru-based online lending platform Axio (formerly Capital Float) has successfully raised Rs 167 crore (approximately $20 million) through a right issue of preference shares. The company has issued 11,25,000 preference shares at an issue price of Rs 1,486 each to existing shareholders.

According to the regulatory filing accessed from the Registrar of Companies (RoC), the rights issue will be offered to shareholders at a ratio of 0.51 shares for every 1 share they currently hold. While the company has not disclosed the names of the investors participating in the round, it is likely that Amazon, a long-time investor in Axio, has made a substantial contribution.

Amazon is believed to have held around 8% stake in the Bengaluru-based lending platform before the fresh round. Other investors, including Light Rock, Elevation, Peak XV, Creation, Ribbit, and QED Innovations, are also backers of the firm.

Axio’s recent fundraising is part of its expansion plans, with the company witnessing significant growth in revenue and reduction in losses over the past fiscal year (FY24). As reported, the firm’s revenue saw a 50% jump, with the company’s losses shrinking by 95%. Although exact numbers for FY24 have not been disclosed, Axio reported a 2X growth in revenue to Rs 220 crore in FY23, with losses marginally increasing to Rs 137 crore in the fiscal year ending March 2023.

The funding will likely aid in further expanding Axio’s clientele and deepening its services in the competitive Indian fintech landscape.