Ethical debt collection startup BFREE gets $2.95 million funding from Capris Ventures

BFREE, an African ethical credit manager, has secured $2.95 Million in a funding round, according to a statement sent to Technext on Thursday. 

The statement says this funding round was led by Capria Ventures, a Global South specialist investing in applied Generative AI. Also, the funding round welcomed a consortium of esteemed investors such as Angaza Capital, GreenHouse Capital, Launch Africa, Modus Africa, Axian CVC, and angel investors.

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. As an ethical credit manager which leverages AI technology to transform the credit collection process across emerging markets, BFREE aims to empower consumers to address debt responsibly while providing effective, customer-centric solutions for lenders.

With an initial focus on credit collection automation, BFREE now evaluates and structures portfolio acquisitions, attracting third-party investors seeking opportunities in emerging markets’ credit portfolios. The company aims to provide effective solutions for debt management while supporting financial institutions in their risk management efforts.

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

Capria Ventures on the other hand is a Global South specialist venture capital firm investing in applied Generative AI. Basically, Capria activates relationships between founders and leading local VC firms in the tech hubs of the Global South. With offices in Seattle, Bangalore, Buenos Aires, Nairobi, and Washington DC, Capria Ventures reportedly manages assets exceeding USD 188M. 

More on the BFREE funding 

According to the statement sent to Technext, this infusion of capital from this funding round will empower BFREE to significantly enhance its suite of risk management solutions customized for banks and lenders. 

Although the company was originally founded with a primary focus on credit collection automation software, BFREE has evolved its approach, as earlier mentioned. 

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.

With this latest funding, 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.

Comments from stakeholders 

CEO of BFREE, Julian Flosbach said his startup is 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.”

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Managing Partner at Capria Ventures, Susana García-Robles said the advent of Generative AI provides a pathway for more efficient scaling and enables 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,” she said.

“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,” she said.

Also, Olivier Munyeshyaka of Angaza Capital, a co-investor in this round, expressed enthusiasm about partnering with BFREE.

He stated:

“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.”