BFREE, an innovative AI-based fintech startup, has secured $2.95 million in new funding led by Capria Ventures, a venture capital firm that invests in generative AI solutions applied in emerging markets.
This is a major milestone for the Nigerian company pioneering customer-centric solutions for both borrowers and lenders on the continent.
Founded in 2020 by Julian Flosbach, Chukwudi Enyi and Moses Nmor, BFREE initially focused on automating credit recovery through AI-based software. However, their ambitions have since evolved into a comprehensive platform that assesses and acquires non-performing loan portfolios from banks and fintechs. By structuring them as alternative investment assets, BFREE has opened new avenues for global funds seeking to exploit Africa’s nascent credit markets.
This new funding will enable BFREE to significantly enhance its suite of tailored risk management solutions for financial institutions in the region. Susana García-Robles, Managing Partner of Capria Ventures, highlighted the potential of BFREE, saying: “The advent of generative AI enables more efficient scaling, allowing the business to grow across Africa at reduced costs. BFREE is well-positioned to drive financial inclusion by improving accessibility while mitigating risk for lenders.
Notably, to date, BFREE has already facilitated over 4.5 million loan restructuring plans in Nigeria, Kenya and Ghana. Securing major banking partnerships highlights their ability to navigate the nuanced collections landscape using ethical AI solutions.
For Olivier Munyeshyaka, co-investor of Angaza Capital, BFREE’s technological approach stood out: “Having witnessed the collection challenges, we are convinced that this partnership will catalyze positive change by opening up new opportunities across the continent.
The diverse investor pool including Capria, Angaza, GreenHouse Capital, Launch Africa, Modus Africa, Axian CVC and angel investors demonstrates widespread confidence in BFREE’s ethical value proposition to transform Africa’s credit markets.
According to CEO Julian Flosbach, moving from collections software to a holistic credit platform was a strategic shift. “Our AI solutions enable distressed borrowers to regain financial stability while promoting security for creditors. With this substantial funding, our ability to generate positive impact will rapidly accelerate across Africa.
As internet and smartphone adoption increases, seamless access to credit could catalyze greater financial inclusion for millions of people. By leveraging strategic investments as well as ethical AI technologies, BFREE positions itself as a leader in responsible lending practices benefiting both borrowers and financiers.
In Africa’s rapidly evolving fintech landscape, BFREE illustrates how the latest technologies can be innovatively leveraged to solve long-standing systemic challenges and forge a more inclusive financial future for the continent’s people.
