Nigerian fintech startup BFREE raised $2.95 M funding to enhance product suite
A US $2.95 million funding round has been raised by Nigerian fintech startup BFREE, a top ethical credit manager platform, in order to improve its product line.
Julian Flosbach, Chukwudi Enyi, and Moses Nmor founded BFREE in 2020 with the goal of using artificial intelligence (AI) to revolutionize the credit collection process in developing nations. The company wants to help financial institutions control risk and manage debt by offering practical debt management solutions.
The startup currently provides services to 4.5 million borrowers in Ghana, Kenya, and Nigeria and has forged strategic alliances with significant commercial banks. In addition to Angaza Capital, GreenHouse Capital, Launch Africa, Modus Africa, Axian CVC, and angel investors, Capria Ventures led the $2.95 million funding round.
The funds will be used by BFREE to improve its line of risk management products, which are tailored for lenders and banks, considerably. BFREE’s original focus was on credit collection automation software, but it has since changed its strategy and is now using large datasets on non-performing loan portfolios to skillfully assess and arrange portfolio acquisitions in partnership with outside investors. Hedge funds and alternative asset managers are among these investors hoping to profit from emerging markets’ credit portfolios as a new asset class.
“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,” said Flosbach, CEO of BFREE.
According to Susana García-Robles, managing partner at Capria Ventures, the introduction of Generative AI paved the way for more effective scaling, which allowed the business to grow more cheaply throughout the continent.
“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,” she said.
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