# Amazon Completes Acquisition of Axio in a Bid to Boost Digital Lending in India

Amazon has officially taken over Axio, expanding its presence in India’s burgeoning digital lending market.

Amazon, the multinational tech titan, recently completed its acquisition of Axio, an Indian financial technology firm. This strategic maneuver aims to bolster Amazon’s digital lending capabilities and consolidate its foothold in the rapidly growing Indian market.

## Acquiring Ground in Finance

The acquisition speaks volumes about Amazon’s ambitions to expand its financial offerings in India. Despite facing a market dominated by traditional lenders, Amazon, by purchasing Axio, is making a bold incursion into the financial landscape. The terms of the deal were not disclosed.

Axio, based in Bangalore, is a firm specializing in software that aids digital lending. This acquisition will provide Amazon with the necessary technological infrastructure to forge ahead in the digital lending segment. It is likely to enhance Amazon’s capacity to facilitate secured and unsecured loans, pushing the company closer to becoming a full-fledged financial services provider.

As a part of the complete acquisition, Axio’s existing employees will start working under Amazon’s umbrella and contribute to its financial service operations in India.

## A Look into Amazon’s History and Plans in India

Since its entry into the Indian market in 2013, Amazon has consistently sought to broaden its services. It has ventured beyond its core e-commerce business into digital payments through Amazon Pay, and even food delivery with Amazon Fresh. This acquisition of Axio aligns with its diversification strategy.

Historically, Amazon’s engagement in India’s financial sector has been centered around its wallet service – Amazon Pay. The platform, though initially a medium for transactions on the Amazon retail site, gradually extended its services to bill payments and money transfers. However, the Axio acquisition indicates Amazon’s larger foray into the financial sector, which might also see its offerings extended to insurance and investment services in the future.

## Potential Implications

Experts view this acquisition as a significant step towards deepening Amazon’s presence in India’s rapidly evolving financial technology landscape. By enhancing its lending capabilities, Amazon may leverage it to boost its seller ecosystem and strengthen the loyalty of its customer base. Furthermore, it might also fuel greater competition in the fast-paced Indian fintech space, triggering innovation and customer-centric solutions.

“Amazon’s acquisition of Axio is a clear indication that they are aiming to be more than an e-commerce player”, says Rajiv Ahuja, a banking and fintech consultant. “By stepping into lending and possibly other financial services, they are looking to lock in their customer base more effectively by controlling more aspects of the value chain. This will be a game-changer in the Indian fintech sector”, he adds.

As the narrative of financial inclusion and digital banking gains momentum in India, Amazon appears poised to play a significant role in shaping the future of financial services in the country. Yet, with increasing scrutiny on big tech’s foray into finance, it remains to be seen how Amazon navigates the intricate web of regulatory compliances. One thing’s for certain – the digital ecology of India’s financial sector is set for a shakeup.

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