Digital banking platform Freo, operated by Mwyn Tech, has reported gross revenue of Rs 350 crore for FY 2023-24. The company has been profitable for the last four months since December 2023, it said in a statement.
Freo's gross revenues jumped 5X to Rs 350 crore over the past five years. It has maintained a positive contribution margin for three consecutive years.
Established in 2015, the platform offers digital banking services to its users. These services include a digital savings account, personal credit lines through Moneytap, as well as pay-later and credit score products for consumers.
With a pan-India presence spanning over 1200 cities, Freo's user base increased from 15 million in FY22 to an impressive 25 million by the end of FY24. A 60 per cent of the company’s customers are returning users from its registered base, with over 20 per cent having multiple products, underscoring the company's ability to cater to diverse financial needs through a single platform, the company said.
According to the company its contribution margins soared from 16 per cent in Q4 FY23 to over 40 per cent in Q4 FY24, driven by low-cost customer acquisition through product-led growth, pan-India expansion to over 1,200 cities, new consumer value propositions, a robust risk control framework, and stringent cost control measures.
The company's revenue streams also diversified, with fee-based revenue now accounting for over 45 per cent of total revenue, alongside the 55 per cent from interest bearing products, strengthening overall profitability.
Anuj Kacker, co-founder at Freo said, "Our remarkable growth, profitability and the trust of over 25 million registered users is a testament to the power of our technology, customer-centric products and our mission of democratising financial inclusion. As we look ahead, we remain committed to breaking new ground and transforming how India accesses financial services through our secure, unified one app ecosystem."
Bangalore-based company recently secured an investment from the Small Industries Development Bank of India (SIDBI), the government bank's first investment in fintech sector.
Additionally, Freo’s NBFC arm has issued its first private placement of non-convertible-debentures which were oversubscribed, highlighting investor confidence in its long-term prospects.
