BFREE, a Nigeria-based buyer of non-performing retail and small-business loans, has raised undisclosed growth equity funding aimed at scaling its acquisition of distressed credit portfolios across African markets.
- •The Series A round was led by AfricInvest through its Financial Inclusion Vehicle, with participation from Algebra Ventures and existing backers including Capria Ventures, VestedWorld, Axian CVC, Angaza Capital, 4Di Capital, and DotExe Ventures.
- •The startup was founded in 2020 by Chukwudi Enyi, Moses Nmor, and Julian Flosbach and previously raised US$10.6 million from investors.
- •BFREE purchases unsecured non-performing loans from banks and fintech lenders, primarily in retail and SME segments where traditional recovery processes are often uneconomical.
“This round puts us in a position to pursue substantially larger portfolio acquisitions, engage a broader range of institutional partners, and do so with the speed and certainty of execution that serious counterparties demand,” said Julian Flosbach, CEO at BFREE.
The firm began as a technology-enabled collections operator and has since shifted into an institutional buyer of loan portfolios. It reports activity across more than 35 transactions and the management of over 11 million borrower accounts.
Proceeds from the round will fund larger portfolio acquisitions, expansion of forward-flow arrangements, and entry into additional African markets where digital lending has grown faster than debt resolution infrastructure.
“High-velocity digital lending has become a core product across markets, with financial institutions, banks and fintechs alike requiring effective ways to manage small ticket non-performing loans. BFREE’s execution-driven team has brought the platform to an inflection point, which will enable them to purchase larger portfolios and become a prime partner for banks and fintechs across African markets,” said Patrick Herrmann, Partner at AfricInvest.
Distressed consumer and SME credit remains an underdeveloped market segment in much of Africa, where lenders frequently write off non-performing loans due to limited legal recovery mechanisms and the absence of active secondary buyers.
BFREE’s model relies on data accumulated from prior recoveries to price portfolios and structure repayment engagements with borrowers. The company already operates in Nigeria, Kenya, and Ghana but did not specify new target markets.
