Nigerian fintech startup BFREE, a pan-African distressed retail and SME credit investor, has closed a growth round that substantially expands its capacity to acquire non-performing loan portfolios, deepen its forward flow partnerships with financial institutions, and extend its presence into new markets across the continent.
Founded in 2020 by Julian Flosbach, Chukwudi Enyi, and Moses Nmor, BFREE leverages AI technology to transform the credit collection process across emerging markets. The company aims to provide effective solutions for debt management while supporting financial institutions in their risk management efforts.
The startup has raised a number of rounds in the past, including a US$2.95m round in early 2024, and has now secured further growth capital – of an undisclosed amount – to continue its expansion.
The round was led by AfricInvest through its Financial Inclusion Vehicle (FIVE), a growth-oriented evergreen investment fund dedicated to advancing financial inclusion across Africa. It also featured Algebra Ventures, making its first investment in a Nigeria-headquartered company, as well as existing investors Capria Ventures, VestedWorld, Axian CVC, Angaza Capital, 4Di Capital, and DotExe Ventures.
Across more than 35 closed transactions and a portfolio of over 11 million borrower accounts, BFREE has accumulated what is likely one of the most extensive proprietary datasets of distressed unsecured borrowers on the continent outside of the credit bureau ecosystem. This data foundation underpins both its underwriting discipline and the high degree of confidence it brings to the return profiles it commits to.
“The market opportunity is significantly larger than the infrastructure historically available to address it. 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.
Beyond one-off acquisitions, BFREE structures forward flow arrangements with financial institutions, committing to acquire newly non-performing accounts on a recurring basis. These partnerships offer lenders a consistent, long-term solution to distressed credit rather than a series of one-off transactions, and they are built on a foundation of borrower engagement that prioritises transparency and realistic repayment structures, on the conviction that responsible resolution produces stronger outcomes for all parties over time.
“BFREE’s approach to credit management, based on a unique set of proprietary data and a technology-enabled collection platform, closes an essential gap in the digital lending value chain. 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.
