Axio, an online lending platform previously known as Capital Float, has successfully secured Rs 167 crore (approximately $20 million) through a rights issue from its existing investors. According to a regulatory filing obtained from the Registrar of Companies (RoC), Axio’s board approved a special resolution to issue 11,25,000 preference shares at Rs 1,486 each, targeting a capital raise of Rs 167 crore.

The rights issue offers existing shareholders 0.51 shares for each share they hold, ensuring their ownership stakes remain proportionate. While the company has not publicly disclosed the names of the participating investors, it is speculated that Amazon, a known backer of Axio, made a significant contribution. This comes amid earlier reports that Amazon was contemplating a full acquisition of the company.

Amazon had previously invested in Axio during its Rs 144 crore extended Series C round in 2018, holding around 8% of the Bengaluru-based platform before this latest round. Other major shareholders include Lightrock, the largest external investor with a 19.42% stake prior to the round, followed by Elevation Capital at 13.84%. Additional key backers include Peak XV, Creation Investments, Ribbit Capital, and QED Innovations.

Axio has demonstrated strong financial performance recently, with co-founder Sashank Rishyasringa revealing a 50% revenue increase and a 95% reduction in losses during FY24. While specific figures for FY24 are yet to be disclosed, Axio reported doubling its revenue to Rs 220 crore in FY23, up from Rs 110 crore in FY22, though losses grew slightly to Rs 137 crore in the fiscal year ending March 2023.

This new capital injection is expected to bolster Axio’s position in the competitive online lending market as the company continues to scale its operations and enhance its service offerings.