Introduction: 

Today, smartphones are replacing everything from notebooks to wallets. Digital banking is the new way of managing money, elevating fintech startups to the next level by offering a credit-first digital bank. Unlike traditional banks with physical infrastructure, digital banks operate entirely online. These online banks provide services like loans and savings accounts with just a single touch on the screen.

The new wave of fintech startups is reshaping the way we manage and use money, and at the forefront of this revolution is the startup founded by Anuj Kacker, Freo. The company aims to redefine banking with a “credit-first” approach. In this article, we’ll learn what this approach means, how Freo challenges traditional banking, and its contribution to building India’s credit-first digital bank.  

What sets Freo apart?

Freo has millions of users signing up every month, especially the younger generation who like to live on their phones. The application not only provides convenience but also helps those with no credit history to build a financial future. 

Freo doesn’t ask users to open savings accounts; instead, it allows customers to create a credit line in minutes. Freo uses algorithms and data analysis to search transaction patterns and social media habits. This helps the app to decide if an individual is creditworthy, even if they have never had a credit card before. 

Freo stands out from others in its feature that allows you to link your credit line to a UPI ID, replacing the need for a card on smartphones. The app also provides savings accounts with good interest rates, insurance, and fixed deposits. Its features, like an easy-to-use interface, budgeting tools, and guidance to manage money, make Freo different from other applications. 

Anuj Kacker: Early life and education

Anuj completed his studies in Mumbai and enrolled at St. Xavier’s College to study mathematics. After that, he got interested in business and enrolled for an MBA course at the Indian School of Business in Hyderabad. From there, he got curious about how he could use technology to solve real-world problems. 

He noticed a gap in the Indian financial system; millions of people were struggling to access credit because traditional banks were slow, with heavy paperwork and lots of procedures involved. This sparked the idea about digital banking, but before reaching there, Anuj worked in the advertising world. Let’s see what led him from creative advertising to the fintech sector.  

The birth of Freo: Credit lines to a digital banking powerhouse

Before starting his own business, Anuj worked with some top companies, where he learned how to build brands and craft compelling stories. These experiences helped him learn more about customer experience, and he was able to figure out that a great product needs a user-friendly interface, as well as what the market needs, when he transitioned to fintech. In 2015, Anuj launched MoneyTap, a mobile application to offer on-demand credit lines to working professionals.

MoneyTap was a success with millions of users across India. The founding members then decided to expand their vision, and in 2020, Anju launched Freo with a bold vision of making credit simple, fast, and accessible to everyone. It targeted the youth and tech-savvy people in smaller cities of India. Anuj noticed that traditional banks rejected people for not having a credit history, or people gave up due to the long process. 

He then tried to tackle this problem with technology and created Freo as a digital bank that starts with credit. Freo uses India’s digital payment system, the Unified Payment Interface (UPI), to make seamless and secure transactions. That’s how Freo was born to redefine the old way of banking. 

Struggles and solutions

Building Freo was not easy; there were several obstacles, like financial regulations and security.  India has strict rules for financial startups that every startup needs to comply with fully. The team had to invest days collaborating with regulators to decode legal requirements and ensure they met every standard. 

Fintech startups were in a boom, and Freo needed an edge to compete in the market. That’s when Anuj leaned towards the credit-first model and UPI integration, making Freo different from others in the same industry. 

Cyber threats and privacy breaches were another challenge as Freo was a fintech startup that couldn’t afford slip-ups. To solve this, Anuj set up a cybersecurity team for encryption and fraud prevention. 

Why does the credit-first model matter?

Traditional banks follow a savings-first approach, which requires customers to open an account and deposit cash to get credit. Sometimes, they may not even get credit after all that, which is a huge issue in India. Freo’s credit-first model uses smart technology to offer quick funds and bypass traditional barriers like long waiting times. Anuj highlighted that credit is the gateway to financial freedom, and by making it accessible to others, Freo offers them opportunities. 

FAQs:

What is Freo (formerly MoneyTap) and how is it different from other digital banks?

Freo is India’s first credit‑led neobank, built around flexible credit lines instead of just payments or savings. It offers seamless borrowing, savings, and payment products—all anchored by its core lending service.

Who founded Freo and what problems did they solve?

Freo was co-founded by Anuj Kacker, Kunal Varma, and Bala Parthasarathy in 2015, tackling limited digital credit access by launching India’s first personal credit‑line platform via the MoneyTap app.

How does Freo’s credit-first model benefit users?

By prioritizing credit, Freo enables instant access to loans, BNPL, and credit cards, streamlining financial flexibility while building users’ credit profiles through responsible usage.

What are Freo’s main products and features in 2025?

Freo now offers Freo Credit (personal credit line), Freo Save (credit‑building savings account via Equitas SFB), Freo Pay (QR‑BNPL and bills), and has launched digital cards, UPI credit, insurance, and wealth services.

Is Freo safe to use and how does it handle security/fraud risks?

A: Yes. Freo protects users by never requesting bank PINs or OTPs, warning against fraudulent UPI requests, and using secure authentication. It communicates only via its official email (hello@moneytap.com).

Who is eligible for Freo and what documentation is required?

Freo’s eligibility is based on credit score, income, and KYC verification. To apply, users need PAN, Aadhaar, income proof, and bank statements. A partner savings account (with Equitas SFB) is required for Freo Save.