Nigerian fintech startup BFREE secures $2.95m funding to facilitate ethical debt recovery for banks and  lenders

Nigerian fintech startup BFREE secures $2.95m funding to facilitate ethical debt recovery for banks and lenders

Published: 01-03-2024 15:27:00 | By: Pie Kamau | hits: 2179 | Tags:

BFREE, Africa's ethical credit manager platform, has announced the successful completion of its latest funding round, securing $ 2.95 million. The round, led by Capria Ventures, a Global South specialist investing in applied Generative AI, welcomed a consortium of esteemed investors, including Angaza Capital, GreenHouse Capital, Launch Africa, Modus Africa, Axian CVC, and angel investors.

BFREE is dedicated to reshaping the credit collection landscape across emerging markets in Africa. Leveraging cutting-edge AI technology, BFREE aims to empower consumers to address debt responsibly while providing effective, customer-centric solutions for lenders.

Julian Flosbach, CEO, BFREE: "At BFREE, we are focused on addressing the challenges of risk management in African economies. Through the use of AI, we are developing solutions that help distressed borrowers get back on their feet while empowering lenders and contributing to financial market stability across the continent. With the support of our investors, we are poised to make significant strides in transforming risk management for lenders in Africa."

The infusion of capital from this funding round will empower BFREE to significantly enhance its suite of risk management solutions customized for banks and lenders. While originally founded with a primary focus on credit collection automation software, BFREE has since evolved its approach. At present, the company harnesses extensive datasets on non-performing loan portfolios to expertly evaluate and structure portfolio acquisitions in collaboration with third-party investors. These investors include alternative asset managers and hedge funds seeking to capitalize on emerging markets’ credit portfolios as a new asset class.

Susana García-Robles, Managing Partner, Capria Ventures: "The advent of Generative AI provides a pathway for more efficient scaling, enabling the company to expand across the continent at a reduced cost. BFREE is well-positioned to play a crucial role in improving accessibility and mitigating risk in financial services. We foresee the growing prominence of credit management and are confident that BFREE will spearhead the creation of a secondary market on the continent for distressed assets. BFREE has secured significant partnerships with top-tier banks and fintechs, affirming the effectiveness of its product and reinforcing our belief in its potential to transform credit collection in Africa."

BFREE has achieved significant growth since its founding in 2020, serving 4.5 million borrowers across Nigeria, Kenya, and Ghana. The company has established strategic partnerships with major commercial banks, underscoring its role in client development within the region.

Olivier Munyeshyaka, Associate, Angaza Capital: "At Angaza Capital, we recognize the immense potential of African markets, and we're excited to partner with BFREE as they embark on their expansion across the continent. Having navigated the complexities of collections firsthand, we're impressed by BFREE's commitment to leveraging technology to address these challenges. Together, we're poised to drive impactful change and unlock new opportunities across Africa."

With this latest funding infusion, BFREE reaffirms its commitment to spearheading Africa's leading ethical credit management platform, driving financial inclusion, and empowering individuals and institutions alike to achieve enduring financial stability and prosperity.