Freo to acquire credit marketplace IndiaLends

Money app Freo has inked an agreement to acquire IndiaLends in a bid to scale existing lending capabilities. Financial terms were not disclosed, and the proposed deal remains subject to regulatory approval.

IndiaLends is a digital marketplace that helps consumers find and apply for personal loans, credit cards, and credit-building products. It works with more than 80 banks and non-banking finance companies, providing distribution and credit discovery for lenders and borrowers.

Freo plans to purchase 100% of the company from its existing roster of institutional backers featuring AdvantEdge Partners, DSG Consumer Partners, American Express Ventures, and ACP Partners, which led a $5.1 million round in 2021.

If the acquisition is completed, IndiaLends will merge with an app that focuses on payment, lending, investment, and insurance products for middle-income consumers. Freo, formerly known as MoneyTap, operates under multiple licenses, including a non-banking financial company (NBFC) licence, a third-party application provider (TPAP) licence for UPI, and an insurance corporate agency licence.

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"The acquisition brings together Freo's financial products and regulatory licences with IndiaLends' marketplace capabilities and distribution, driving sharper execution across products and partners," Freo said in announcing the acquisition agreement.

The combined platform hopes to reach around 50 million users, with growth to be driven by "a stronger product focus along with deep AI interventions", the statement continues. "Early signs of mutual synergies are expected to begin reflecting over the next few months as integration across teams, partners and product lines deepens."

Freo indicates that preparations for "a large capital raise" are currently underway to support the combined platform, which will be "operationalised in a phased manner". Current investors in Freo include Peak XV Partners (formerly Sequoia Capital India), Prime Venture Partners, and MegaDelta, among others.