Business News

Nigerian debt recovery startup, Bfree secures $2.95 million in fresh funding 

Tech-enabled debt collection startup, Bfree has raised $2.95 million in new funding to enhance its risk management solutions tailored to banks and lenders. 

The round was led by Capria Ventures with participation from Angaza Capital, GreenHouse Capital, Launch Africa, Modus Africa, Axian CVC, and angel investors. The company had completed its Pre-Series A round of $2.5 million in 2022. 

Bfree was cofounded in 2020 by Julian Flosbach, Chukwudi Enyi, and Moses Nmor to revolutionize the credit collection landscape in emerging markets across Africa.  

The company utilizes advanced AI technology to empower consumers to manage their debts responsibly while providing lenders with effective, customer-centric solutions. 

Commenting on the company’s commitment to addressing the challenges of risk management and how the newly raised fund would enhance that, CEO of Bfree, Julian Flosbach, said: 

Commenting on the investment, Susana García-Robles, managing partner at Capria Ventures, a Global South specialist VC firm investing in applied Generative AI, said:  

Since its founding in 2020, Bfreeclaims 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. 

Its current loan portfolio stands at over $400 million, out of which it has managed to collect 12.5%.