Mwyn Tech, which operates the digital banking platform Freo, has raised debt funding from the Small Industries Development Bank of India (Sidbi), according to ETtech report.
The company will utilise the funds for growth into newer categories and segments as well as to expand into new pan-India geographies.
Founded in 2015, Freo provides digital banking services to users, including a digital savings account, a personal credit line through Moneytap, and pay-later and credit score products to consumers.
“The investment from Sidbi bolsters our confidence in our processes and diligence and is a start to a relationship as we look to expand into newer categories and demographics. We look to use the capital for growth and launch newer products such as credit on UPI,” said Anuj Kacker, cofounder, Freo to ET.
Kacker declined to comment on the total value of the investment.
The investment assumes significance since Sidbi usually doesn’t invest in startups directly but rather through Securities and Exchange Board of India (SEBI)-registered alternative investment funds (AIFs).
At present, Freo claims to have touched 25 million users across 1,200 cities in India.
Sidbi, through its fund-of-funds, has invested Rs 17,534 crore across 938 startups, a recent report from rating agency Crisil showed. In a joint study with Sidbi, the Crisil report added that 129 AIFs were sanctioned commitment from the various fund-of-funds schemes.
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