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Consumer finance startup Axio has secured $20 million in equity funding from Amazon Smbhav Venture Fund.

The funding will help Axio scale its lending operations, checkout finance options, and credit products, the startup said in a release.

Formerly called Capital Float, Axio provides ‘pay later’ services through partnerships with ecommerce platforms. It also offers credit and personal finance management.

According to the release, the non-banking finance company has 10 million customers, with more than 60% of its clientele residing in non-metro areas. Axio does $1 billion in annualised disbursals, it added.

“This investment will enable us to further scale our loan book, enhance our checkout finance offering, and expand credit offerings to existing customers,” said co-founders Sashank Rishyasringa and Gaurav Hinduja, in a joint statement.

“By combining product innovation with robust underwriting and risk controls, our aim is to unlock access to credit for the next 200 million customers across India,” they added.

Abhijeet Muzumdar, Vice President and Head Amazon Smbhav Venture Fund and Corporate Development, said, “This investment and our long-term relationship reflect our belief in Axio’s ability to provide credit products and will enable them to expand innovative financial services products to more customers while upholding responsible risk management.”

Prior to this funding round, the company had raised $137 million in equity and $671 million in debt. In 2021, the company raised $50 million in an equity funding round led by Lightrock India, with participation from other existing and new investors.

Axio had earlier raised funding from investors including Peak XV (formerly Sequoia India), Elevation Capital (formerly SAIF Partners), Ribbit Capital, and Amazon Smbhav Venture Fund.