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● Freo, a growing digital banking platform, is all set to expand quickly in India’s booming fintech market. SIDBI’s investment in Freo will play a pivotal role in fueling this expansion, serving as crucial growth capital for the company
● With this investment, Freo can now help even more people with their banking needs, using digital technology. This move cements Freo’s reputation as a leader in digital banking, showing its dedication to making banking easier for more people in India
National, February 15, 2024: Freo, a growing digital banking platform, has secured a debt investment of an undisclosed amount from SIDBI. This marks SIDBI’s first debt investment in a fintech company, highlighting their trust in Freo’s business model and future growth prospects.
The investment comes at an opportune time as Freo is poised for rapid expansion, aiming to further penetrate India’s fast-growing fintech market. The funds will provide growth capital to accelerate Freo’s pan-India reach and allow it to serve the banking and financial needs of millions of more customers.
SIDBI, as the leading financial institution focused on India’s MSME sector, plays a crucial role in driving the country’s economic growth. Through various schemes, it has provided vital support to promising startups and innovative business models.
SIDBI’s recent investment in Freo, marking its first venture into the fintech sector, underscores its confidence in the sector’s potential to foster financial inclusion and entrepreneurship nationwide. This strategic move reflects SIDBI’s commitment to identifying and nurturing innovative solutions that can contribute significantly to India’s economic development and empower small businesses across the country.
Anuj Kacker, Co-founder – Freo said, “We’re extremely excited to initiate this partnership with SIDBI, marking a pivotal moment in Freo’s evolution. 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, startups, 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. These initiatives contribute significantly to fostering entrepreneurship and early-stage investing, ultimately benefiting the Indian economy.
About Freo
Freo, a leading consumer digital banking platform, stands out in India’s financial market by addressing the complete financial needs of Indians under the guiding principle of ‘pay, save, borrow.’ The platform offers a range of financial products including credit lines, credit cards, and credit-on-UPI through Rupay, and savings solutions, all accessible via an intuitive mobile app.
With its expansive reach across over 1200 cities, 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. The vision is to provide freedom from traditional banking hassles, offering simple, intuitive, and smart solutions right on users’ mobile devices. This approach has established Freo as a unique and trusted player in the digital banking sector in India.