Read more about Business
The funding round was led by Capria Ventures and included other VCs such as Angaza Capital, GreenHouse Capital, Launch Africa, Modus Africa, and Axian CVC, as well as several angel investors. This round brings the total funding raised by the startup to date to $6.5 million, including previously undisclosed bridge funding worth $1.1 million. Launched in 2020 by Julian Flosbach (CEO), Chukwudi Enyi (COO), and Moses Nmor (CPO), Bfree leverages tech to make the debt recovery process easier and more humane. Its founders say they established it after witnessing the unsavoury means by which predatory lenders went about retrieving their loans from victims. Bfree has introduced several debt collection methods, including chatbots and self-service platforms. They make borrower-friendly service possible, by enabling action based on financial and behavioural data. Although the startup began by serving digital lenders, it has now made banks its principal focus. Flosbach notes that digital lenders now make up only a minority of its client base; banks contribute up to 70% of its revenues. Bfree currently works with 14 institutions, and has served a total of 45 since its launch.
Sign up for the Connect Nigeria daily newsletter
Reports suggest that Bfree is one of a few tech-powered debt collection startups—if not the only one –in Africa. Its emergence could open up a new niche to a generation of problem solvers while tackling what is a pressing issue for many commercial organizations. Speaking about the investment in Bfree, Susana Garcia-Robles, managing partner at Capria Ventures, said that the startup’s use of generative AI would enable it to scale more efficiently. She said that it had shown significant signs that it could transform the business of credit in Africa. “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,” Garcia-Robles said. “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.”
Register to attend the CN Business Mixer
At the moment, Bfree is operational in Nigeria, Ghana, and Kenya. It intends to strengthen its presence in these countries, catering to banks and other major lenders. This represents a backtracking on its initial plans for rapid expansion across the continent—a shift that’s been informed by a recent slowdown in funding activity.
Got a suggestion? Contact us: editor@connectnigeria.com
You might also like:
- Consumer Technology: Smartphone Penetration in Nigeria
- Consumer Technology: E-commerce and Digital Payments
- 7 Things to Consider Before Choosing a Fibre to the Home Provider in Nigeria
- 8 Productivity Hacks for Tech Professionals
