Freo has agreed to acquire a 100% stake in IndiaLends, aiming to scale its digital lending footprint and deepen partnerships across India’s financial ecosystem. The transaction is subject to regulatory approvals, and the companies did not disclose deal terms.
Founded by Kunal Varma, Anuj Kacker and Bala Parthasarathy, Freo began as MoneyTap in 2016 and rebranded in 2021. It has since evolved into a full-stack digital finance platform offering credit lines, co-branded credit cards, credit-on-UPI via RuPay, insurance distribution and savings products. The company serves users across more than 1,200 cities and 19,000 pin codes, and holds a TPAP licence for UPI, an NBFC licence, and an Insurance Corporate Agent licence.
Strategic rationale and market reach
IndiaLends brings an established marketplace that works with over 80 banks and NBFCs, providing Freo access to a wider lender network and distribution channel. Post-transaction, both entities will continue operating as independent brands while collaborating on product development, risk technology and customer service.
Freo co-founder and CEO Kunal Varma said the next phase of fintech growth will be led by players that blend regulatory strength, broad customer access, sustainable unit economics and AI-driven systems.
AI-led execution and scale plans
The combined platform is expected to reach more than 5 crore users nationwide. Freo plans to deploy AI-driven underwriting, customer analytics and automated onboarding to improve operating efficiency and accelerate customer acquisition.
The company also plans to raise fresh capital to support expansion, enhance AI capabilities and invest in digital lending infrastructure.
Financial performance and backing
Freo reported a stronger operating profile in FY25, narrowing its net loss by about 38% to ₹8.8 crore, while revenue rose to ₹116.77 crore. The firm is backed by Peak XV Partners, Prime Venture Partners and MegaDelta, and is positioning for growth in India’s fast-expanding digital finance market.
