Freo Secures Debt Funding from SIDBI to Expand Financial Services Footprint
- ByStartupStory | February 16, 2024
Freo, the digital banking platform operated by Mwyn Tech, has successfully secured an undisclosed amount of debt funding from the Small Industries Development Bank of India (SIDBI). This investment marks SIDBI’s first debt investment in a fintech business and underlines its confidence in the sector’s potential to drive financial inclusion and entrepreneurship across India.
Founded in 2015 by Bala Parthasarathy, Anuj Kacker, and Kunal Varma, Freo aims to address the financial needs of Indians with its ‘pay, save, borrow’ philosophy. The platform offers a wide range of financial products, including credit lines, credit cards, and credit-on-UPI through Rupay, along with savings solutions.
The fresh funding will enable Freo to diversify into new categories and segments while expanding its presence nationwide. Anuj Kacker, Co-founder of Freo, expressed excitement about the partnership with SIDBI, highlighting its significance in Freo’s journey and anticipating a long and fruitful relationship.
SIDBI, founded in 1990, focuses on promoting, financing, and developing the Micro, Small, and Medium Enterprises (MSME) sector in India. It actively invests in various sectors, including mobility, startups, and MSMEs, managing several Fund of Funds (FoF) programs on behalf of the Indian government and state governments.
Despite a 63% decline in VC funding in India’s fintech industry in 2023, raising only $3 billion compared to the record-breaking $8 billion in 2021, Freo’s partnership with SIDBI signifies a positive step towards driving growth and innovation in the sector.
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