Digital banking platform Freo has announced that it will acquire a 100% stake in lending marketplace IndiaLends. The deal is still waiting for regulatory approvals, and the companies have not shared the financial details of the acquisition.
Freo was founded in 2015/2016 by Kunal Varma, Anuj Kacker, and Bala Parthasarathy. The company first started as MoneyTap before rebranding as Freo in 2021. Over the years, it has grown into a digital financial platform that offers services like credit lines, credit cards, insurance, savings products, and credit-on-UPI through RuPay.
The company currently serves customers in more than 1,200 cities and 19,000 pin codes across India. Freo also holds important licenses, including a TPAP license for UPI services, an NBFC license, and an Insurance Corporate Agent license.
Deal Aims to Strengthen Lending Network
With this acquisition, Freo wants to strengthen its lending business and expand its customer reach. IndiaLends already works with more than 80 banks and NBFCs, giving Freo access to a larger lending and distribution network.
Even after the acquisition, both Freo and IndiaLends will continue operating as separate brands. However, the two companies will work together to improve products, technology, and customer services.
Freo Co-Founder and CEO Kunal Varma said the future of fintech will depend on companies that combine strong licenses, wide customer reach, profitable growth, and AI-powered systems.
Focus on AI and Future Growth
After the acquisition, the combined platform is expected to serve over 50 million users across India. Freo plans to use AI-based technologies, customer analytics, and automated systems to improve efficiency and speed up customer acquisition.
The company has also announced plans to raise fresh capital soon to support future growth and invest more in AI and digital lending infrastructure.
Freo has already shown improvement in its financial performance. In FY25, the company reduced its net loss by nearly 38% to ₹8.8 crore, while revenue increased to ₹116.77 crore. Backed by investors like Peak XV Partners, Prime Venture Partners, and MegaDelta, Freo is now looking to expand further in India’s growing digital finance market.