New Delhi: Co-founder Anuj Kacker stated that Freo, the digital banking platform, is aiming for a 25-30 per cent increase in its gross revenue for the current fiscal year, while also maintaining a strong focus on profitability.
Kacker informed PTI that the recent declaration by RBI about establishing a public repository of Digital Lending Apps (DLA) connected to regulated entities is a positive step that would enhance trust in the digital lending ecosystem. He stated that Freo's business is expanding in various sectors, and the company is determined to continue being profitable. He stated that this year we anticipate a growth of 25-30 percent in gross revenue and 50-60 percent in net revenue due to our increased share in gross revenue.
Freo achieved total revenue of Rs 350 crore in the fiscal year 2024. The company has been making a profit since December 2023. "He mentioned that we made a profit in the June quarter of this financial year, and we anticipate being profitable in the September quarter as well," referring to the fiscal performance thus far.
Inquired about the company's goal of maintaining profitability for the entire current fiscal year, Kacker affirmed, "Yes, we are committed to that now." The concept is to avoid being negative as much as possible. The improvement since the December quarter was helped by various factors, with a significant portion attributed to a decrease in customer acquisition expenses.
Additionally, we did not overspend on our set costs, as we decided to discontinue 5-6 new projects after evaluating their success. He mentioned that we revisited our suppliers and collaborators to discuss improved profit margins, but he believes our greatest success came from introducing new products, especially within the 'pay' aspect of our company.
Freo provides an extensive selection of services such as credit lines, cards, loans, bill payments, credit on UPI, savings accounts, deposits, insurance solutions, and financial utilities - all consolidated in one platform. Earlier this year, SIDBI made its first debt investment in a fintech company by securing a debt investment for Freo. He expressed his approval for RBI's latest decision to create a platform for approved digital lending apps, stating that he believes it will boost credibility.
However, he pointed out that even though it won't prevent a legitimate app from being included in the repository and still scamming a user, it will result in their removal. The database will enhance the trust between users and the application, providing additional assurance to the authorities by clearly distinguishing the legitimate apps from those engaging in dishonest actions.
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