BFREE Expands Capacity to Acquire Distressed Credit Across Africa

Nigerian fintech startup BFREE has closed a growth funding round that will significantly expand its ability to purchase non-performing loan portfolios and deepen partnerships with financial institutions across the continent. The company, founded in 2020 by Julian Flosbach, Chukwudi Enyi, and Moses Nmor, uses AI technology to transform credit collection processes in emerging markets.

The undisclosed funding round was led by AfricInvest through its Financial Inclusion Vehicle (FIVE), with participation from Algebra Ventures and existing investors including Capria Ventures, VestedWorld, Axian CVC, Angaza Capital, 4Di Capital, and DotExe Ventures. This follows previous rounds of funding, including $2.95 million raised earlier in 2024.

Extensive Data Foundation

With over 35 completed transactions spanning more than 11 million borrower accounts, BFREE has built one of the most comprehensive proprietary datasets of distressed unsecured borrowers in Africa outside of traditional credit bureau systems. This data informs both underwriting decisions and return expectations.

“The market opportunity is significantly larger than what infrastructure historically existed to address,” said Julian Flosbach, CEO of BFREE. “This funding allows us to pursue substantially larger acquisitions with the speed and certainty that institutional partners require.”

Beyond One-Off Transactions

BFREE structures forward flow arrangements with financial institutions – committing to acquire newly non-performing accounts on an ongoing basis. This provides lenders with a consistent, long-term solution rather than isolated transactions.

“BFREE’s approach closes an essential gap in the digital lending value chain,” noted Patrick Herrmann, partner at AfricInvest. “As high-velocity digital lending becomes more prevalent, financial institutions need effective ways to manage small ticket non-performing loans.”

By focusing on responsible resolution through transparent repayment structures and borrower engagement, BFREE aims to create stronger outcomes for all stakeholders while supporting the growth of sustainable credit markets across Africa.