Axio, formerly known as Capital Float, is a significant player in India's fintech sector. Founded in 2013, the company has grown substantially over the years, driven by its mission to make credit accessible and user-friendly for a wide range of customers.
Axio was founded with a clear vision to make credit a tool for growth rather than a trap. The founders, Gaurav Hinduja and Sashank Rishyasringa, met at Stanford University during their MBA program. They shared a mutual desire to use credit as a force for good in India's growth story.
The early days of Axio were focused on providing technology-driven easy credit access and customized finance products. This was particularly aimed at bridging the credit gap for small businesses. Over time, the company expanded its services to include consumer lending, becoming a full-fledged digital consumer financial services organization.
The vision of Axio is to empower the huge aspirational population of India to use credit responsibly. This involves making the credit process quick and seamless, especially at checkout points across various brands.
Gaurav Hinduja and Sashank Rishyasringa are the co-founders of Axio. Gaurav Hinduja, who also serves as the Managing Director, has a background as the COO at Gokaldes Exports Limited. Sashank Rishyasringa, on the other hand, was an Engagement Manager at McKinsey & Co. before co-founding Axio.
The founders' diverse backgrounds brought valuable expertise to the table. Gaurav Hinduja's experience in operations and Sashank Rishyasringa's experience in consulting have been instrumental in shaping Axio's strategy and operations.
Their time at Stanford University and their subsequent careers prepared them well to tackle the challenges of the fintech industry and build a robust financial platform.
Axio has undergone significant evolution since its inception. From its initial focus on small businesses to its current status as a comprehensive digital financial services provider, the company has expanded its offerings and customer base substantially.
Axio started by focusing on small businesses, providing them with easy access to credit through technology-driven solutions. In 2018, the company entered the consumer lending space, marking a significant shift in its business model. Over the next two years, Axio transformed into a full-fledged digital consumer financial services organization.
Today, Axio offers a range of services including pay-later options, credit, and personal finance management. The company has integrated its services with platforms like Amazon Pay Later, further expanding its reach.
The transition from a small business lender to a consumer-focused fintech company has been driven by the founders' vision to make credit accessible to a broader audience.
Axio has achieved several key growth milestones. For instance, the company concluded FY22-23 with an impressive 2x growth in its customer base and Gross Merchandise Value (GMV) compared to FY21-22.
In 2021, Axio raised $50 million in equity funding led by Lightrock India, which included participation from other existing and new investors. This funding round was crucial for scaling the company's operations.
As of May 2023, Axio has served 15 million customers, with 7.5 million credit customers, and has enabled 3,000 merchants. The company reported a 200% growth in its consumer credit business from September 2021 to September 2022.
Axio's product portfolio has expanded significantly over the years. The company now offers a variety of credit products and services. This includes pay-later options, personal finance management tools, and various credit products tailored for different customer lifecycles.
The integration with Amazon Pay Later has been a key expansion, allowing Axio to offer more credit options to customers through this platform. Additionally, the company has enabled credit at checkout across 4,000 brands, making the credit process seamless for consumers.
The expansion of Axio's product portfolio is aimed at unlocking access to credit for the next 200 million customers across India, as stated by the co-founders[1]).
Axio's technology infrastructure is a crucial aspect of its operations. The company has invested heavily in building a robust and secure platform to support its financial services.
Axio's core platform architecture is designed to be flexible and scalable. The company uses advanced technologies to facilitate quick and seamless credit access. This includes a user-friendly interface that allows customers to manage their finances and access credit easily.
The platform is built to handle a large volume of transactions and customer data securely. Axio's architecture allows for the integration of various services, such as pay-later options and personal finance management tools, into a single cohesive platform[1]).
The use of technology has been a key driver in Axio's growth, enabling the company to serve a large customer base efficiently and effectively[3]).
Axio places a strong emphasis on security and compliance. The company operates under the regulatory framework of the Reserve Bank of India (RBI) as a non-banking finance company (NBFC).
Axio's security framework includes robust underwriting and risk controls. This ensures that the credit process is secure and compliant with all regulatory requirements. The company also conducts regular security audits to maintain the integrity of its platform[1]).
In addition to its financial services, Axio also collaborates with other companies to perform cybersecurity architecture design reviews (CADR) to ensure the security of critical infrastructure. This involves a thorough review of network architecture, system configurations, and network traffic to identify vulnerabilities and strengthen cybersecurity posture[4]).
Axio has been at the forefront of innovation in the fintech industry. The company's use of technology to make credit accessible and user-friendly has set a new standard. Axio's integration with platforms like Amazon Pay Later and its enablement of credit at checkout across various brands are examples of this innovation[2]).
The company's focus on product innovation combined with robust underwriting and risk controls has enabled it to scale its loan book and enhance its checkout finance offering. This approach has helped Axio to unlock access to credit for a large segment of the Indian population[1]).
Axio's innovative approach has also led to significant growth milestones, including a 200% growth in its consumer credit business and serving 15 million customers as of May 2023[3]).
Axio, formerly known as Capital Float, has made a significant impact on the Indian market, particularly in the realm of digital consumer finance. Here’s a closer look at their achievements.
Axio has seen remarkable growth in its user base. By mid-2022, the company had already reached a customer base of 6 million users and was adding around 15,000 new borrowers every day[7].
Axio’s user base has been growing rapidly. Here are some key statistics:
This growth is a testament to the company’s ability to provide accessible and personalized credit solutions. Axio’s founders, Gaurav Hinduja and Sashank Rishyasringa, have been instrumental in driving this growth through innovative products and services.
Axio has been expanding its market share by broadening the use cases for its checkout finance solutions and introducing new credit products. This strategy aims to meet diverse consumer needs and increase its market presence.
Axio is expanding its market share through several initiatives:
By combining product innovation with robust underwriting and risk controls, Axio aims to unlock access to credit for a larger segment of the Indian population[6].
Axio’s focus on financial inclusion is a key aspect of its market impact. The company offers personalized credit solutions ranging from INR 30K to INR 4 Lakh, making credit more accessible to a broader audience.
Axio’s financial inclusion initiatives include:
This approach helps in bridging the credit gap and promoting financial inclusion, especially for those who may not have access to traditional banking services.
Axio’s financial journey is marked by significant milestones and strategic decisions.
Axio’s revenue growth has been substantial. The company’s lending business had crossed an annualized rate of over Rs 5,000 crore by mid-2022, with expectations of breaking through the Rs 7,500 crore mark soon[7].
Axio’s revenue growth story is impressive:
Despite facing challenges during the pandemic, Axio has managed to maintain a strong revenue trajectory.
Axio is still in the process of achieving profitability. The company has faced losses, particularly during the pandemic, but it continues to work towards becoming profitable.
Axio’s path to profitability involves several steps:
The recent investment from the Amazon Smbhav Venture Fund is expected to help Axio further scale its operations and move closer to profitability[6].
Axio has secured significant investments to fuel its growth. The latest $20 million investment from the Amazon Smbhav Venture Fund is a major boost to its operations.
Axio’s investment rounds and valuations include:
This investment will enable Axio to further scale its loan book, enhance its checkout finance offering, and expand credit offerings to existing customers[6].
Axio has formed several strategic partnerships to strengthen its position in the market.
Axio has partnerships with various banks to co-lend and offer more comprehensive financial services. These collaborations help in expanding the reach of its credit products.
Axio’s banking collaborations include:
These partnerships are crucial for Axio’s growth and help in achieving its financial inclusion goals.
Axio partners with merchants to offer checkout finance solutions, making it easier for consumers to purchase goods and services on credit.
Axio’s merchant partnerships involve:
These partnerships are beneficial for both Axio and the merchants, as they increase consumer spending and loyalty.
Axio uses advanced technology in its underwriting and risk management processes. The company has developed in-house models to ensure robust risk controls.
Axio’s technology alliances and innovations include:
These technological advancements help Axio in providing better services and managing risks more effectively[7].
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