Aavishkaar Capital led the debt relief platform FREED in raising Rs 60 crore, or roughly $6.5 million. Existing investors Sorin Investments, Piper Serica, and Sattva Ventures also participated in the round.
Two years have passed since Sorin Investments, Multiply Venture, and other investors led the company’s Rs 60 crore Series A funding. In a pre-Series A round headed by Inflection Point Ventures, FREED raised $2.8 million in May 2022.
The additional funds will be utilized to grow operations, penetrate new markets, improve underwriting and product capabilities, and strengthen institutional ties.
Founded in 2020, FREED uses trustee-managed special purpose accounts to offer financial counseling, negotiated settlements, and structured repayment plans. Through regulated lending partners, it enables structured consolidation loans for borrowers who are under stress but have the capacity to repay.
In addition to managing over 1.2 lakh active accounts and overseeing over Rs 3,200 crore in debt under management, FREED claims to have counseled over 20 lakh customers.
Over the next 18 months, the company hopes to enroll nearly $1 billion in stressed debt. Additionally, it claims to have improved unit economics and grown at a CAGR of about 19% during the previous year.
In addition to FREED, competitors in this market include Loan Settlement, Single Debt, and CreditQ.
