Bfree, a forefront ethical credit management platform, has successfully raised $2.95 million in a funding round aimed at bolstering its array of risk management solutions.
This investment round was spearheaded by Capria Ventures and saw participation from a notable group of investors, including Angaza Capital, GreenHouse Capital, Launch Africa, Modus Africa, Axian CVC, and several angel investors.
Launched in 2020 by founders Julian Flosbach, Chukwudi Enyi, and Moses Nmor, Bfree is on a mission to transform the credit collection field in emerging African markets. By harnessing advanced AI technology, Bfree is set to enable consumers to manage their debts more effectively, while also providing lenders with innovative, customer-focused solutions.
Julian Flosbach, Bfree’s CEO, emphasized the company’s commitment to tackling the challenges of risk management in African economies. “By leveraging AI technology, we’re crafting solutions that not only assist borrowers in distress but also bolster lenders and enhance financial market stability across Africa,” he stated.
He further added, “With the backing of our investors, we’re well-positioned to advance risk management for lenders throughout the continent.”The latest funding will allow Bfree to substantially expand its risk management solutions tailored for banks and other lending institutions. Initially established with a core focus on automating credit collection, Bfree has broadened its scope. The company now utilizes vast datasets on non-performing loan portfolios to adeptly assess and manage portfolio acquisitions in partnership with external investors. These collaborations often involve alternative asset managers and hedge funds keen on investing in the emerging markets’ credit portfolios, recognizing them as a burgeoning asset class.
Bfree’s loan portfolio currently exceeds $400 million, with the company having successfully recovered 12.5% of this amount. The startup is also in the process of establishing a secondary market for debt. This innovative move aims to attract third-party investors, such as hedge funds interested in diversifying their portfolios, by offering them the opportunity to purchase non-performing loans (NPLs) from African banks.
“Generative AI is paving the way for more efficient scalability, enabling Bfree to broaden its reach across the continent while minimizing costs. Bfree is strategically positioned to enhance access and reduce risk in financial services,” commented Susana García-Robles, Managing Partner at Capria Ventures. She expressed confidence in the rising importance of credit management and Bfree’s leadership in creating a secondary market for distressed assets in Africa.
García-Robles further noted, “Bfree has established key partnerships with leading banks and fintech companies, which validates the effectiveness of its offerings and strengthens our confidence in its ability to revolutionize credit collection across Africa.”
