NIGERIA – Bfree, a tech-enabled debt collection startup based in Nigeria, has announced the completion of its latest funding round, securing a total of US$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.
The 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.
Founded in 2020 by Julian Flosbach, Chukwudi Enyi, and Moses Nmor, 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.
“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,” said Julian Flosbach, CEO of Bfree.
“With the support of our investors, we are poised to make significant strides in transforming risk management for lenders in Africa.”
Currently, 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.
The company’s current loan portfolio stands at over US$400 million, out of which it has managed to collect 12.5%. The startup also plans to create a secondary debt market, to allow third-party investors like hedge funds, looking to diversify their investments, to buy non-performing loans (NLPs) from banks in Africa.
“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,” Susana García-Robles, Managing Partner at Capria Ventures, said.
“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.”
Since its founding in 2020, Bfree claims to have experienced significant growth and has served 4.5 million borrowers across Nigeria, Kenya, and Ghana. The company has formed strategic partnerships with major commercial banks, highlighting its role in regional client development.
The startup is arguably the only tech-enabled credit recovery company across Africa, where collectors continue to heavily rely on traditional options like call centers to follow-up on settlements.
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