Mwyn Tech's Freo Raises Debt Funding from Sidbi for Expansion

Mwyn Tech, the company behind the popular digital banking platform Freo, has secured debt funding from the Small Industries Development Bank of India (Sidbi). The funding injection aims to propel Freo’s expansion into new product segments and geographical areas across India.

Established in 2015, Freo has been catering to users with its array of digital banking services, including digital savings accounts, personal credit lines via Moneytap, and pay-later options. Now, the company eyes venturing into fresh domains like ‘credit on UPI’ to diversify its offerings.

Anuj Kacker, Freo’s cofounder, expressed optimism about the investment from Sidbi, citing it as a validation of their operational prowess and diligence. However, he refrained from disclosing the exact investment figure.

Sidbi’s direct investment in startups, an uncommon move for the institution known for channeling funds through registered alternative investment funds (AIFs), underscores the potential it sees in Freo’s growth trajectory.

Freo currently boasts a user base of 25 million spread across 1,200 Indian cities. Sidbi’s involvement in the startup ecosystem is notable, with a recent report indicating investments totaling Rs 17,534 crore in 938 startups. The report, conducted jointly with Crisil, also highlighted the commitment received by 129 AIFs from various fund-of-funds schemes managed by Sidbi.

With this funding boost from Sidbi, Freo is poised to further democratize digital banking services and reach untapped demographics across the Indian landscape.