The funding round was led by Aavishkaar Capital, with participation from existing investors Sorin Investments, Piper Serica and Sattva Ventures
The fresh funds will be deployed to scale operations, expand geographic reach, strengthen product and underwriting capabilities, and deepen partnerships
Prior to this round, the fintech platform raised ₹60 Cr (about $7.5 Mn) in its Series A round, led by Sorin Investments and Multiply Ventures, in 2024
Fintech startup Freed
has raised ₹60 Cr (about $6.6 Mn) in a funding round led by Aavishkaar Capital, with participation from existing investors Sorin Investments, Piper Serica and Sattva Ventures.
The startup said that the fresh funds will be deployed to scale operations, expand geographic reach, strengthen product and underwriting capabilities, and deepen partnerships.
Founded in 2020 by Ritesh Srivastava, FREED is a borrower-centric debt relief platform that leverages technology to provide solutions to individuals to get free of debt. It offers three plans – Debt Resolution Programme, Debt Consolidation Programme, and FREED Shield.
Under the Debt Resolution Programme, the startup negotiates with creditors to help individuals get relief in debt amount, while under the Debt Consolidation Programme, it combines all the debts so that the customers have to pay a single EMI. FREED Shield helps in resolving collection harassment safely and securely.
The startup claims to have counselled over 20 Lakh customers to date. It manages over 1.2 Lakh active accounts and has overseen more than ₹3,200 Cr in debt under management.
FREED said it is on track to enroll close to $1 Bn in stressed debt over the next 18 months.
Prior to this round, the fintech platform raised ₹60 Cr (about $7.5 Mn) in its Series A round, led by Sorin Investments and Multiply Ventures, in 2024 to expand its reach and improve its technology
With deepening consumer credit penetration, the debt resolution and collection segment is growing fast. A number of Indian startups are leveraging technology to provide solutions for this segment. These startups are also seeing a lot of interest from investors, who continue to be bullish on the fintech sector.
In March last year, AI-powered debt resolution platform Rezolv raised $3.5 Mn in its seed funding round led by 3one4 Capital. Debt collection startup DPDZero raised $7 Mn in August 2025 to develop its multi-lingual AI agent to streamline the issue of debt collection for financial institutions.
