Freo, a growing digital banking platform, today reported stellar gross revenue of INR 350 crore for FY 2023-24. The company has been profitable for the last four months since December 2023, cementing its position as India’s leading financial one app catering to the middle-income segment.

Freo’s gross revenues jumped 5X to an impressive INR 350 crore over the past five years. This remarkable trajectory was driven by the company’s unwavering commitment to its core business fundamentals, in spite of multiple setbacks faced during the COVID-19 pandemic. Notably, Freo has consistently maintained a positive contribution margin for three consecutive years, a testament to its disciplined approach to growth and profitability.

With a pan-India presence spanning over 1200 cities, the company’s user base increased from 15 million in FY22 to an impressive 25 million by the end of FY24. A staggering 60% of Freo’s customers are returning users from its registered base, with over 20% having multiple products, underscoring the company’s ability to cater to diverse financial needs through a single platform.

Freo’s contribution margins soared from 16% in Q4 FY23 to over 40% 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% of total revenue, alongside the 55% from interest bearing products, strengthening overall profitability.

Mr. Anuj Kacker, Co-founder at Freo said, “Freo’s journey from being only mono-product (MoneyTap) to becoming India’s leading financial app (Freo) has been one of perseverance, innovation and an unwavering focus on serving the overlooked millions of middle-income Indians. 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.”

The company’s innovative app lies at the core of its success, offering a comprehensive range of products including credit lines, cards, loans, bill payments, credit on UPI, savings accounts, deposits, insurance solutions and financial utilities – all integrated into a single platform. Extensive user research across segments ensures a seamless, user-friendly experience tailored to evolving customer needs.

Data security is paramount at Freo, with robust, bank-grade measures implemented along with top certifications like ISO 27001 and PCI-DSS. Working exclusively with regulated entities, adhering to stringent guidelines, and undergoing periodic audits ensure the highest compliance standards are met in safeguarding users’ financial information.

Recently, Freo secured an investment from SIDBI, the government bank’s first such investment in fintech – a testament to its robust compliance standards. 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.

With its robust financials, innovative product line-up, deep understanding of its target middle-income segment, and customer-centric approach, Freo is well-positioned for continued profitable growth. The company remains open to raising additional strategic funds to further accelerate its growth engine and intensify its mission of empowering financial well-being for middle-class India through its holistic one app ecosystem.