Bfree: Pioneering Ethical Debt Recovery in Africa with $3M Funding Boost
Nigerian fintech startup Bfree is transforming debt collection across Africa through technology-driven, ethical solutions. The company recently secured \(2.95 million in a funding round led by Capria Ventures, bringing its total funding to \)6.5 million.
The Ethical Alternative to Aggressive Debt Collection
Founded in 2020 by Julian Flosbach (CEO), Chukwudi Enyi (COO), and Moses Nmor (CPO), Bfree was born from witnessing the harmful effects of predatory lending practices like incessant calling and public shaming. The startup has developed humane, tech-enabled solutions that prioritize borrower dignity while improving recovery rates.
Innovative Debt Collection Technology
Bfree’s platform offers:
- Self-service portals for borrowers to negotiate payment plans
- AI-powered tools including chatbots and callbots
- Workflow SaaS for in-house collection teams
- Data-driven approaches based on behavioral and financial insights
“92% of our customer interactions are fully automated,” explains Flosbach, though the company maintains a small call center for complex cases.
Strategic Focus on Banking Sector
While Bfree initially worked with digital lenders, it has strategically shifted focus to banks, which now contribute 70% of revenue. The startup currently serves 14 institutional clients across Ghana, Kenya, and Nigeria, having worked with 45 since launch.
“Banks’ large loan portfolios make them ideal partners as we scale,” notes Flosbach.
Creating Africa’s First Secondary Debt Market
With a current loan portfolio exceeding $400 million (12.5% collection rate), Bfree is pioneering an innovative secondary market for non-performing loans (NPLs). This allows:
- Banks to offload risk from their balance sheets
- Investors to purchase NPLs at discounted rates
- Improved liquidity in African financial markets
“Our proprietary algorithms can accurately value distressed assets,” says Flosbach. “This creates new opportunities while helping banks manage risk.”
Investor Confidence in Bfree’s Model
Susana García-Robles of Capria Ventures highlights Bfree’s potential:
“Generative AI enables efficient scaling across Africa. Bfree is uniquely positioned to transform credit management and create the continent’s first secondary market for distressed assets.”
Strategic Market Focus
While initially planning rapid global expansion, Bfree has refined its strategy to concentrate on core African markets, recognizing the need for localized approaches in different regions.
This funding round positions Bfree to expand its ethical debt collection solutions while developing innovative financial products for Africa’s evolving credit landscape.
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