BFREE, a Nigerian credit management fintech startup, has raised a pre-Series A fundraising round of US$1.7 million and reinforced its management team in preparation for worldwide development.
After raising an early US$800,000 in May, BFREE has now obtained a US$1.7 million pre-Series A investment led by 4Di Capital, Octerra Capital, VestedWorld, Voltron Capital, Logos Ventures, and many undisclosed angel investors.
Chukwudi Enyi, Moses Nmor, and Julian Flosbach founded BFREE in August 2020 to provide ethical digital-first credit collection solutions to financial institutions in emerging markets.
“Interest rates on retail loans remain extremely high in emerging nations, owing mostly to high default rates and a lack of infrastructure. We can reduce default rates with BFREE’s collection solution, which will result in a long-term reduction in the borrower’s cost of capital,” said Flosach, BFREE’s chief executive officer (CEO).
4Di Capital’s Anton van Vlaanderen stated that BFREE was his firm’s first investment in Nigeria.
“The company has achieved tremendous traction in such a short period of time, demonstrating the enormous opportunities in the credit management industry in emerging economies. We are now optimistic about their aspirations to expand into markets like India, Brazil, and Egypt,” he added.
After 16 months in operation, the startup currently administers collections for over 30 digital lenders, microfinance institutions, and commercial banks in Nigeria and Kenya.
BFREE will use the additional capital to expand globally and considerably boost its management team.