Freo has acquired digital lending marketplace IndiaLends in a strategic move that gives Freo full ownership of the company and significantly expands its fintech ecosystem.
The acquisition combines Freo’s financial product suite and regulatory licences with IndiaLends’ extensive lending marketplace and distribution network. As a result, the merged entity will serve more than 50 million users across India’s rapidly growing digital financial services sector.
Founded by IIT-ISB alumni, Freo offers a range of products spanning payments, credit, insurance, and investments. The company currently operates with multiple regulatory approvals, including a TPAP licence for UPI services, an NBFC licence, and an insurance corporate agent licence. Consequently, the acquisition strengthens Freo’s position in India’s competitive fintech market while expanding its reach in digital lending, embedded finance, and consumer credit solutions.
Meanwhile, IndiaLends, founded by Gaurav Chopra, operates a digital marketplace for loans and credit cards. The platform has integrations with more than 80 banks, NBFCs, and financial institutions, enabling users to access multiple lending and financial products through a single interface. Previously, IndiaLends had raised $5.1 million in a funding round led by existing investors ACP Partners and DSG Consumer Partners.
The combined entity now plans to focus on AI-led workflows, customer analytics, underwriting technologies, and integrated financial product offerings as it scales operations across India. Additionally, the merger is expected to improve operating efficiency, strengthen product execution, and enhance customer acquisition capabilities over the coming months.
Freo also revealed that the merged company is preparing for a large capital raise to support its next phase of growth and expansion in the Indian fintech ecosystem. The planned fundraising effort could further accelerate investments in artificial intelligence, digital lending infrastructure, fintech innovation, and customer-focused financial services.
Earlier, in February 2024, Freo had secured an undisclosed amount in a debt funding round from SIDBI, further strengthening its financial position ahead of the acquisition.
Freo’s acquisition of IndiaLends marks a significant consolidation move in India’s fintech and digital lending industry. By combining technology, regulatory capabilities, lending partnerships, and AI-driven financial services, the merged platform aims to strengthen its leadership position in India’s rapidly evolving digital finance market.
