Fintech startup Freo has announced the acquisition of digital lending marketplace IndiaLends in a deal that will give it full ownership of the company.
The acquisition brings together Freo’s financial products and regulatory licences with IndiaLends’ lending marketplace and distribution network.
Following the deal, Freo’s ecosystem will serve more than 50 million users.
Founded by IIT-ISB alumni, Freo offers products across payments, credit, insurance, and investments. The company operates with licences including a TPAP licence for UPI, an NBFC licence, and an insurance corporate agent licence.
IndiaLends, founded by Gaurav Chopra, operates a digital marketplace for loans and credit cards and has integrations with over 80 banks, NBFCs, and financial institutions., IndiaLendson had raised $5.1 million in a financing round led by existing investors ACP Partners and DSG Consumer Partners
The combined entity plans to focus on AI-led workflows, customer analytics, underwriting, and integrated product offerings as it scales operations.
The integration is expected to improve operating metrics and strengthen product execution over the coming months.
Freo also said the merged entity is planning a large capital raise to support its next phase of growth.
Back in February 2024, Freo had raised an undisclosed amount in a debt round from SIDBI.
