Bfree, a Nigerian fintech company specialising in debt collection, has raised $2.95 million in a bid to expand its services across Africa and develop innovative debt collection solutions.
Led by Capria Ventures, this funding round brings the company’s total funding to $6.5 million, including a previously undisclosed bridge round of $1.1 million secured in 2023.
Founded in 2020 to revolutionise the debt collection landscape in Africa by offering a more ethical and automated approach to business, Bfree’s debt collection methods include a self-service platform for borrowers to manage payment plans and AI-powered chatbots and callbots for communication.
While 92% of interactions are automated, Bfree maintain a call centre for human interaction when necessary. Additionally, a loan collection management software (SaaS) called Workflow is on offer for companies with existing collection teams.
The company also has ambitious plans to create a secondary debt market in Africa by creating a marketplace that allows investors (such as hedge funds) to buy non-performing loans (NPLs) from banks. Bfree also offers banks analytics solutions to navigate the secondary debt market.
Says Bfree CEO, Julian Flosbach: “We’ve developed an algorithm to value NPLs based on data analysis. This allows us to buy these assets from banks, taking the risk off their books”.
According to Susana GarcĂa-Robles (Managing Partner, Capria Ventures): “Bfree is well-positioned to play a crucial role in improving financial accessibility and mitigating risk. We believe they will spearhead the creation of a secondary market for distressed assets on the [African] continent.”