Synopsis
Bengaluru-based digital banking platform Freo has acquired credit marketplace IndiaLends, which will continue to operate as a separate entity. This strategic move aims to leverage synergies between the two platforms, which target similar customer segments. Freo, which offers digital banking services and credit products, will now be able to serve over 50 million users.IndiaLends, founded by Gaurav Chopra and Mayank Kachhwaha in 2015, is a digital credit marketplace, helping individuals discover the right personal loans, credit cards, and credit-building tools tailored to their financial profiles. Per a company statement, It has loan partnerships with over 85 banks and NBFCs across India.
“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," Anuj Kacker, cofounder of Freo, told ET.
Founded in 2015 by Kunal Varma, Kacker, and Bala Parthasarathy, Freo provides digital banking services to users, including a digital savings account, a personal credit line through MoneyTap, and pay-later and credit score products.
Freo is backed by investors like Peak XV Partners, Prime Venture Partners, MegaDelta, and others. Post the acquisition of IndiaLends, Freo will be able to serve over 50 million users in its ecosystem, the statement adds.
Recently, the company raised an undisclosed amount of debt from the Small Industries Development Bank of India (Sidbi) on Feb 15, 2024.
“From an entity perspective, both will run independently in parallel with no immediate change. IndiaLends has a brilliant brand name in the market, there is no reason for us to kill it,” Kacker said.
According to Tracxn data, Freo’s revenue has steadily grown over the years, from Rs 78.6 crore in FY21 to Rs 116.8 crore in FY25. During the same period, the company has reduced its losses from Rs 38.8 crore to Rs 8.8 crore.
