New Delhi, May 6 -- Digital banking platform Freo, operated by MWYN Tech Pvt. Ltd, has agreed to acquire a 100% stake in credit marketplace IndiaLends, whose backers include DSG Consumer Partners, London-headquartered ACP Partners and American Express Ventures.
The transaction is subject to regulatory approvals. Freo did not disclose the financial terms of the deal.
The acquisition is expected to expand Freo's distribution network and strengthen its full-stack fintech offering, taking the combined platform's reach to over 50 million users.
"The acquisition brings together Freo's financial products and regulatory licences with IndiaLends' marketplace capabilities and distribution, driving sharper execution across products and partners," the companies said in a joint statement.
The deal comes amid rising consolidation in India's fintech sector, as companies push for profitability by integrating across credit, distribution and underwriting.
"India's digital financial services market is maturing, and relevant consolidation is a natural next step," said Kunal Varma, co-founder and CEO of Freo. "The platforms that win the next decade will combine the right licences, distribution, profitable discipline, and AI embedded across the stack. With IndiaLends, Freo now has all four at scale," he added.
Freo said integration will be carried out in phases, with early synergies expected over the coming months as teams and partner networks are aligned.
The company is also planning a large capital raise to fund its next phase of growth, as it targets India's growing base of middle-income, mobile-first consumers.
Freo, formerly known as MoneyTap, was founded in 2016 by Varma, Anuj Kacker and Bala Parthasarathy. Its investors include Peak XV Partners, Prime Venture Partners and MegaDelta. The company operates across payments, lending and insurance, with licences spanning NBFC, UPI (TPAP) and insurance corporate agency.
Meanwhile, IndiaLends, founded by Gaurav Chopra, operates a digital marketplace for personal loans and credit cards, with integrations across banks and non-banking financial companies.
"IndiaLends was started with a strong belief that every Indian deserves access to the right credit, at the right time, from the right lender," said Chopra. "Joining Freo amplifies it. Together, we bring a full-stack platform, a vast distribution network, and decades of combined experience to the market," he added.
Queries sent to IndiaLends remained unanswered till the time of publishing this article.
Published by HT Digital Content Services with permission from VC Circle.