Digital banking platform, Freo has secured a debt investment of an undisclosed amount from Small Industries Development Bank of India (SIDBI), making the regulator’s first investments in a fintech sector. SIDBI is an apex body to regulates the companies and activities in micro, small, and medium enterprise sectors.
Freo is a consumer digital banking platform that offers a range of financial products including credit lines, credit cards, credit-on-UPI through Rupay, and savings solutions, all accessible via an intuitive mobile app.
The fintech, poised to expand its services, stated in a press release that the funds will be utilised to accelerate its pan-India reach and enhance its operations.
Anuj Kacker, co-founder of Freo said, “This collaboration isn't just a significant achievement for us; it symbolizes the beginning of what we anticipate will be a long and fruitful relationship. We're confident that with SIDBI by our side, this is merely the first step toward achieving even greater accomplishments together. Our shared goals and commitment to innovation promise a future where we continue to break new ground and set higher standards in the fintech ecosystem.”
SIDBI actively invests in various sectors, including mobility, start-ups, and Micro, Small, and Medium Enterprises (MSMEs). It manages several Fund of Funds (FoF) programs on behalf of the Indian government and state governments. These programs aim to boost startups and MSMEs by investing in SEBI-registered Venture Funds and Alternative Investment Funds.
In 2015, Bala Parthasarathy (CEO), Anuj Kacker, and Kunal Varma started the neo-bank MoneyTap, which was later renamed Freo. The fintech was one of the early entrants in the mobile-based credit lending space. It began its operations with RBL Bank and added major names to its list of partners.
Mwyn Tech operated fintech provides neo-banking services, including digital savings accounts, a personal credit line, cards, and credit-on-UPI through Rupay, and savings solutions, all accessible via an intuitive mobile app.
The company claims to have a presence in more than 1200 cities. It provides its services by offering innovative financial solutions through strategic partnerships with the top regulated banks, NBFCs, and other financial service providers.
Freo distinguishes itself in the market by offering innovative financial solutions through strategic partnerships with the top regulated banks, NBFCs, and other financial service providers.