Nigerian fintech startup BFREE concludes Growth round to boost pan-African credit-buying operations
The pan-African distressed retail and SME credit investor BFREE, a Nigerian fintech startup, has completed a growth round that significantly increases its ability to buy non-performing loan portfolios, strengthen its forward flow relationships with financial institutions, and expand into new markets throughout the continent.
Julian Flosbach, Chukwudi Enyi, and Moses Nmor founded BFREE in 2020 with the goal of revolutionizing credit collection in emerging markets through the use of artificial intelligence. The company’s goal is to help financial institutions manage risk while offering efficient debt management solutions.
The startup has previously raised several rounds of funding, including a US$2.95 million round in early 2024. In order to continue expanding, it has now obtained additional growth capital of an undisclosed sum.
Through its Financial Inclusion Vehicle (FIVE), a growth-oriented evergreen investment fund committed to promoting financial inclusion throughout Africa, AfricInvest led the round. Along with current investors Capria Ventures, VestedWorld, Axian CVC, Angaza Capital, 4Di Capital, and DotExe Ventures, it also included Algebra Ventures, which made its first investment in a Nigerian company.
With a portfolio of over 11 million borrower accounts and over 35 closed transactions, BFREE has amassed what is probably one of the largest proprietary datasets of distressed unsecured borrowers on the continent outside of the credit bureau ecosystem. Its underwriting discipline and the high level of confidence it brings to the return profiles it commits to are both supported by this data foundation.
“The market opportunity is significantly larger than the infrastructure historically available to address it. This round puts us in a position to pursue substantially larger portfolio acquisitions, engage a broader range of institutional partners, and do so with the speed and certainty of execution that serious counterparties demand,” said Julian Flosbach, CEO at BFREE.
In addition to one-time purchases, BFREE enters into forward flow agreements with financial institutions, pledging to regularly purchase newly non-performing accounts. Built on a foundation of borrower engagement that prioritizes transparency and reasonable repayment structures, these partnerships provide lenders with a consistent, long-term solution to distressed credit rather than a series of one-time transactions. They are based on the belief that responsible resolution eventually results in stronger outcomes for all parties.
“BFREE’s approach to credit management, based on a unique set of proprietary data and a technology-enabled collection platform, closes an essential gap in the digital lending value chain. High-velocity digital lending has become a core product across markets, with financial institutions, banks and fintechs alike requiring effective ways to manage small ticket non-performing loans. BFREE’s execution-driven team has brought the platform to an inflection point, which will enable them to purchase larger portfolios and become a prime partner for banks and fintechs across African markets,” said Patrick Herrmann, partner at AfricInvest.
