16th February 2024 Freo, a growing digital banking platform, has secured a debt investment of an undisclosed amount from SIDBI. This marks SIDBI’s first debt investment in a fintech company, highlighting their trust in Freo’s business model and future growth prospects.

The investment comes at an opportune time as Freo is poised for rapid expansion, aiming to further penetrate India’s fast-growing fintech market. The funds will provide growth capital to accelerate Freo’s pan-India reach and allow it to serve the banking and financial needs of millions of more customers.

SIDBI, as the leading financial institution focused on India’s MSME sector, plays a crucial role in driving the country’s economic growth. Through various schemes, it has provided vital support to promising startups and innovative business models.

SIDBI’s recent investment in Freo, marking its first venture into the fintech sector, underscores its confidence in the sector’s potential to foster financial inclusion and entrepreneurship nationwide. This strategic move reflects SIDBI’s commitment to identifying and nurturing innovative solutions that can contribute significantly to India’s economic development and empower small businesses across the country.

Anuj Kacker, Co-founder – Freo said, “We’re extremely excited to initiate this partnership with SIDBI, marking a pivotal moment in Freo’s evolution. This collaboration isn’t just a significant achievement for us; it symbolizes the beginning of what we anticipate will be a long and fruitful relationship. We’re confident that with SIDBI by our side, this is merely the first step toward achieving even greater accomplishments together. Our shared goals and commitment to innovation promise a future where we continue to break new ground and set higher standards in the fintech ecosystem.”

SIDBI actively invests in various sectors, including mobility, startups, and Micro, Small, and Medium Enterprises (MSMEs). It manages several Fund of Funds (FoF) programs on behalf of the Indian government and state governments. These programs aim to boost startups and MSMEs by investing in SEBI-registered Venture Funds and Alternative Investment Funds. These initiatives contribute significantly to fostering entrepreneurship and early-stage investing, ultimately benefiting the Indian economy.