Online lending platform Axio, formerly known as Capital Float, has successfully raised Rs 167 crore (approximately $20 million) through a rights issue from its existing investors. According to a regulatory filing accessed from the Registrar of Companies (RoC), Axio’s board has passed a special resolution to issue 11,25,000 preference shares at an issue price of Rs 1,486 each, aiming to generate Rs 167 crore.
The rights issue is structured to offer existing shareholders 0.51 shares for every share they currently hold, ensuring the capital raise aligns with their current ownership stakes. While the company has not disclosed the names of participating investors, Amazon, a known investor in Axio, is speculated to have made a significant contribution. Amazon’s involvement comes after earlier reports suggested that the e-commerce giant was considering a complete acquisition of Axio.
Amazon had previously invested in Axio during its Rs 144 crore extended Series C round in 2018, holding around 8% of the Bengaluru-based lending platform before the latest round. Other key shareholders include Lightrock, the largest external stakeholder with a 19.42% stake before the round, followed by Elevation Capital with 13.84%. Peak XV, Creation Investments, Ribbit Capital, and QED Innovations are also among Axio’s notable backers.
Axio has shown strong financial performance recently. In a statement to the media, co-founder Sashank Rishyasringa revealed that the company saw a 50% increase in revenue and a 95% reduction in losses during the last fiscal year (FY24). While specific figures for FY24 have not yet been disclosed, Axio reported doubling its revenue to Rs 220 crore in FY23, compared to Rs 110 crore in FY22. The company’s losses grew slightly to Rs 137 crore in the fiscal year ending March 2023.
This new injection of capital is expected to further strengthen Axio’s position in the competitive online lending space as it continues to scale its operations and enhance its service offerings.
