Quick Summary:
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Verdant Capital invested $3 million into Bfree through its Hybrid Fund.
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Bfree specializes in ethical, tech-driven debt recovery across African markets.
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The funding will support the acquisition of distressed loan portfolios.
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Over 6.6 million borrowers have been served by Bfree, managing $740M+ in distressed assets.
Founded in 2020, Bfree has become a leader in debt recovery innovation. It combines digital-first strategies with globally compliant ethical practices to handle distressed loans across Africa.
The company addresses key challenges in the sector, including:
- Outdated debt collection methods
- Inconsistent data for portfolio valuation
- Regulatory and legal obstacles
- Volatile pricing in loan resale markets
- Weak enforcement of judicial mechanisms
Bfree’s proprietary loan pricing model uses internal data and analytics to forecast repayment behavior, enabling more accurate valuation and better recovery outcomes.
Proven Impact in Numbers
Since its launch, Bfree has:
- Managed over $740 million in distressed portfolios
- Served more than 6.6 million borrowers across Africa
- Improved financial outcomes for both lenders and borrowers
- Paved the way for scalable and ethical debt collection practices
Driving Financial Inclusion Across Africa
The Verdant Capital Hybrid Fund’s investment aligns with its core mission to enhance financial inclusion. By helping Bfree acquire and rehabilitate written-off loan portfolios, the Fund injects much-needed capital into the ecosystem.
This initiative allows financial institutions to focus on lending, while helping previously defaulted borrowers repair their credit and regain access to financial services.
Support Beyond Capital
Bfree will also benefit from technical assistance provided by the Fund. This includes operational support and capacity-building to improve service delivery and scale more efficiently.
The deal not only meets Verdant Capital’s performance benchmarks but also reinforces the value of investing in scalable, impact-driven solutions across emerging markets.