Axio

Axio, formerly known as Capital Float, is a digital lending platform providing checkout financing, personal loans, and money management tools to Indian consumers. Founded in 2013 by Stanford University alumni Gaurav Hinduja and Sashank Rishyasringa, the Bengaluru-based company aims to address India's credit gap by making financing more accessible. Hinduja, with a background as COO at Gokaldes Exports, and Rishyasringa, a former Engagement Manager at McKinsey & Co., identified a widespread need for accessible credit that was hindering growth across multiple sectors in India.

The company began as Capital Float, initially focusing on providing technology-driven, collateral-free loans to small and medium-sized enterprises (SMEs). In 2018, it expanded into consumer lending, which has since become a major focus. In July 2022, the company rebranded to Axio, unifying its consumer offerings, including Capital Float, Walnut, and Walnut 369, under a single brand. The name Axio is derived from the Greek word 'axios', meaning 'worthy', reflecting the company's mission to make credit a worthy tool for all.

Axio's business model is centered on its technology, which uses a data-driven engine for underwriting, allowing for near-instant lending decisions at the point of purchase. Its primary service is an embedded finance or 'Buy Now, Pay Later' (BNPL) solution integrated at the checkout of thousands of merchant partners, including major brands like Amazon, Decathlon, and Xiaomi. This allows consumers to convert purchases into EMIs, often with no prior sign-up required. The company operates on a co-lending model, partnering with banks and other financial institutions to leverage their capital while using its own NBFC license to lend from its books. Revenue is generated from interest and processing fees on the loans it provides. For its checkout finance product, the company states its customer acquisition cost is zero, as merchants integrate the service to boost their own sales. After establishing a repayment history with customers through smaller, point-of-sale loans, Axio offers them larger, longer-tenure personal loans, which is a more profitable line of business.

Over the years, Axio has secured significant funding from investors, including Amazon, Peak XV (formerly Sequoia India), Elevation Capital, and Lightrock India. As of August 2024, the company had raised a total of $206 million over 13 rounds. It serves over 15 million customers and has integrated its checkout finance solution with over 4,000 brands.

Keywords: digital lending, checkout finance, buy now pay later, BNPL, personal loans, consumer finance, financial technology, fintech India, SME lending, credit access, money management, embedded finance, point-of-sale financing, CapFloat Financial Services, Gaurav Hinduja, Sashank Rishyasringa, online loans, EMI financing, Indian fintech, digital credit, working capital, credit management, financial inclusion, Capital Float, Walnut app