Digital Banking Platform Freo Eyes 25-30% Growth, Focuses on Profitability

Digital banking platform Freo is projecting a 25-30% growth in gross revenue for the current fiscal and remains focused on profitability. The company has been profitable since December 2023, aided by reducing customer acquisition costs and launching new products. Freo secured a debt investment from SIDBI earlier this year.

Digital banking platform Freo is aiming for a 25-30% increase in its gross revenue for the current fiscal year, according to co-founder Anuj Kacker. The company continues to emphasize profitability.

Kacker told PTI that the recent move by RBI to create a public repository of Digital Lending Apps (DLA) linked to regulated entities would bolster confidence in the digital lending ecosystem.

He added that Freo's business growth spans multiple verticals while remaining focused on sustaining profitability. This fiscal year, Freo expects to see a 50-60% rise in net revenue as its share in gross revenue increases. The company reported a gross revenue of Rs 350 crore for FY24 and has been profitable since December 2023.

Kacker emphasized that the firm has turned a corner on profitability and intends to maintain it. Efforts to reduce customer acquisition costs and judicious project management, along with enhanced vendor negotiations, have contributed to this turnaround. Notably, the launch of new 'pay' vertical products was a significant boost.

Earlier this year, Freo secured a debt investment from SIDBI, marking the first such investment in a fintech company by the financial institution.

Discussing RBI's recent announcement, Kacker praised the initiative as a positive step towards increasing trust within the digital lending landscape. The repository will help identify unauthorized lending apps, thereby enhancing consumer and authority confidence.

Earlier this month, RBI proposed creating a public repository of digital lending apps to combat unauthorized players in the segment. This measure aims to foster the orderly development of India's digital lending ecosystem.