Freo has acquired a 100% stake in credit marketplace IndiaLends, which will continue operating as a separate entity under the platform.
Freo said the deal strengthens its lending, distribution and AI capabilities as India’s digital financial services market matures.
Following the acquisition, Freo will gain access to over 50 million users while deepening its presence in India’s digital credit ecosystem.
Freo Bets Big on AI and Lending With IndiaLends Acquisition
Freo has acquired credit marketplace IndiaLends in a strategic fintech consolidation move aimed at expanding its lending ecosystem, user base and AI-driven financial services capabilities
Anuj Kacker, Co-founder at Freo and Kunal Varma, CEO and Co-founder at Freo (L-R)
Summary
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Digital banking platform Freo has acquired a 100% stake in credit marketplace IndiaLends, which will continue to operate as a separate entity under the digital banking platform, The Economic Times reported. However, the acquisition amount was not disclosed.
IndiaLends was founded in 2015 by Gaurav Chopra and Mayank Kacchwaa as a digital credit marketplace. The platform helps individuals access personal loans, credit cards, and credit-building tools tailored to their financial profiles.
According to reports citing company statements, IndiaLends has lending partnerships with more than 85 banks and NBFCs across India.
Speaking to Inc42, Freo cofounder and CEO Kunal Varma said, “India’s digital financial services market is maturing, and relevant consolidation is a natural next step.
The platforms that win the next decade will combine the right licences, the right distribution, profitable discipline, and AI embedded across the stack. With IndiaLends, Freo now has all four at scale.”
Freo was also founded in 2015 and offers digital banking services including digital savings accounts, personal credit lines through MoneyTap, buy-now-pay-later products, and credit score services.
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The company counts Peak XV Partners, Prime Venture Partners, and MegaDelta among its investors.
“We have already been doing business for the last 2–3 years because we are also listed on their platform as a lending partner. Of course, there will be synergies because we are targeting the same customer segment,” ET reported, citing Freo cofounder Anuj Kacker.
Financial Positions
IndiaLends catered to more than 2.5 crore users and had raised $5.1 million in its Series A funding round from ACP Partners and DSG Consumer Partners in 2021. Following the acquisition, Freo will be able to provide services to over 50 million users, according to a company statement.
Over the years, Freo’s revenue has steadily grown to ₹116.8 crore in FY25 from ₹78.6 crore in FY21, according to the ET report citing Tracxn data. The company also reduced its losses to ₹8.8 crore from ₹38.8 crore during the same period.
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Freo had additionally raised an undisclosed amount of debt from the Small Industries Development Bank of India (SIDBI) in 2024.