Digital banking platform Freo, operated by Mwyn Tech, has secured an undisclosed debt funding from Small Industries Development Bank of India (SIDBI).
The investment also marks SIDBI’s first debt bet on a fintech business.
The startup plans to deploy the fresh proceeds to branch out into newer categories and segments as well as to expand its footprint across India.
Freo, founded in 2015 by Bala Parthasarathy, Anuj Kacker Co-Founder, Kunal Varma Co-Founder & CEO, addresses the 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.
“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,” Fero said in a statement.
Anuj Kacker, cofounder of 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.”
SIDBI, founded in April 1990, aims to promote, finance and develop the MSME sector and also, coordinate with institutions with similar objectives.
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.
India’s fintech industry saw a 63% plunge in VC funding in 2023, raising only $3 Bn compared to the record-breaking $8 Bn in 2021.