Digital banking platform Freo is planning to launch insurance and wealth management verticals in the next few months.

“We upsell insurance where we work with partners like Acko. We will have a play as a separate vertical in the coming few months. For wealth, we will start with FDs and RDs and that will be launched very soon,” Anuj Kacker, co-founder, Freo, said, adding that the company may also facilitate investments in mutual fund and gold.

The company is also planning to launch its own unified payments interface (UPI) handle and offer credit on UPI in the current financial year.

Currently, the company has three key verticals – Freo Pay, Freo Save and Freo Credit.

While Freo Pay includes offers products like bill payments and co-branded credit cards, Freo Save offers customers savings accounts in partnership with Equitas Small Finance Bank. Meanwhile, Freo Credit, formerly known as MoneyTap, offers loans to salaried and self-employed individuals.

The company posted a gross revenue of `350 crore in 2023-24 (April-March), a five-fold jump in the last five years. The company has been profitable for the last four months since December 2023.

Fee-based revenue accounts for over 45% of Freo’s total revenue, while the remaining 55% comes from interest bearing products.

The company’s contribution margins rose to 40% as on March 31 from 16% a year ago, driven by low-cost customer acquisition, expansion to over 1,200 cities, new consumer value propositions, a robust risk control framework and stringent cost-control measures. The company’s user base increased to 25 million as on March 31 from 15 million two years ago.

Going ahead, the company expects its gross revenue to grow by 30-50% in the current financial year. It intends to be profitable for the entire year.

“We will keep our contribution margin at around 40%. We will invest in growth while staying positive at the bottom line,” Kacker said.

 In February, Mwyn Tech, which operates Freo, raised debt funding from Small Industries Development Bank of India (SIDBI). While the quantum remains undisclosed, the company will utilise the funds for growth into newer categories and segments as well as to expand into new pan-India geographies.