Bfree, a technology-driven debt collection startup headquartered in Nigeria, emerged to revolutionize debt recovery practices after its founders observed the detrimental impacts of aggressive retrieval methods used by predatory digital lenders, such as incessant calls and debt-shaming.
Since its establishment in 2020, the startup has introduced scalable debt recovery solutions, including a self-service platform enabling borrowers to establish new payment plans, and conversational AI tools like chatbots and callbots as part of its collections-as-a-service offering. These innovations ensure humane after-sales services for borrowers, utilizing behavioral and financial data to inform actions.
With its customer base expanding to encompass major banks in Ghana, Kenya, and Nigeria, Bfree plans to continue scaling operations. The startup secured $2.95 million in fresh funding led by Capria Ventures, with participation from Angaza Capital, GreenHouse Capital, Launch Africa, Modus Africa, Axian CVC, and several angel investors. This round brings its total funding raised to $6.5 million, including last year’s undisclosed $1.1 million bridge round.
Julian Flosbach (CEO), co-founder alongside Chukwudi Enyi (COO) and Moses Nmor (CPO), revealed that while Bfree initially targeted digital lenders, they now primarily focus on banks, which contribute up to 70% of revenues due to their large loan portfolios. The startup serves 14 customers presently, having worked with 45 since its inception.
Bfree boasts that 92% of its customer interactions are fully automated, yet it maintains a call center staffed by a small team for customer inquiries and follow-ups requiring phone communication. Additionally, it launched Workflow, a loan collection management SaaS targeting companies with in-house collection teams or those hesitant to outsource.
Amidst a landscape where debt collectors across Africa heavily rely on traditional methods like call centers for settlements, Bfree stands out as the sole tech-enabled credit recovery company on the continent, spearheading innovative approaches to debt collection.
source: Techcrunch