Mwyn Tech, the company behind the digital banking platform Freo, secured debt funding from the Small Industries Development Bank of India (Sidbi).
The funds will fuel expansion into new categories, segments, and pan-India geographies.
Established in 2015, Freo offers digital banking services like a digital savings account, a personal credit line through Moneytap, and pay-later and credit score products.
It aims to enter new product segments, including ‘credit on UPI.’
“The investment from Sidbi bolsters our confidence in our processes and diligence and is a start to a relationship as we look to expand into newer categories and demographics. We look to use the capital for growth and launch newer products such as credit on UPI,” said Anuj Kacker, cofounder of Freo.
This investment by Sidbi is notable because Sidbi typically invests in startups indirectly through the Securities and Exchange Board of India (SEBI)-registered alternative investment funds (AIFs).
Freo claims to have reached 25 million users in 1,200 cities across India.
According to a recent report from rating agency Crisil, Sidbi, through its fund-of-funds, has invested Rs 17,534 crore across 938 startups. The report, conducted in collaboration with Sidbi, also revealed that 129 AIFs received commitments from various fund-of-funds schemes.
