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.
Transforming risk management
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:
- “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.”
Commenting on the investment, Susana García-Robles, managing partner at Capria Ventures, a Global South specialist VC firm investing in applied Generative AI, said:
- “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.”
What you should know
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%.
